Clear Channel Takes 95,000 SF at Pinnacle

Terms of the transaction were undisclosed, but industry sources estimate the total consideration at more than $45 million. Clear Channel, which is based in San Antonio, will consolidate eight of its radio stations from the Los Angeles area into the new facility, with room to expand within the space.

Carl Muhlstein of Cushman & Wakefield of California Inc., who represented Los Angeles-based M. David Paul, tells GlobeSt.com that Clear Channel expects to occupy the new space in October. With the lease signing, Muhlstein says, the first phase of the Pinnacle will be nearly 85% leased. The first phase consists of a six-story, 395,000-sf building completed July 2002.

The Pinnacle is a 4.4-acre office campus at 3400 Olive Ave. in the heart of the Burbank Media District, which is so-named because of the concentration of media companies there. Jeff Worthe, a principal at M. David Paul, says Clear Channel joins other media industry tenants including Warner Music Group and NBC Enterprises. Pre-leasing has also begun for Phase II, a six-story, 235,000-sf office building.

Clear Channel was represented by Michelle McDonald of Liberty-Greenfield, in conjunction with Christopher Cooper and Sherie Yearton of Jones Lang LaSalle.

The incoming tenant owns radio and television stations, outdoor displays, and entertainment venues in 66 countries. Including announced transactions, Clear Channel operates approximately 1,225 radio and 37 television stations in the US and has equity interests in more than 240 radio stations internationally. Clear Channel also operates approximately 776,000 outdoor advertising displays, including billboards, street furniture and transit panels around the world.

M. David Paul Development LLC and its related companies have the developed approximately 2.5 million sf of new construction and more than one million sf of renovation construction since the company's inception in 1967.