Glendale City Center Sale Closes

Terms of the sale were not disclosed, but Tishman Speyer is believed to have paid more than $70 million for the 17-story, granite-clad class A office building at 101 N. Brand Blvd. in a deal brokered by Tom Bohlinger, Patrick Church and Sean Sullivan of CB Richard Ellis.

Glendale City Center, which includes approximately 24,000 sf of retail space, was completed in 1991 by Homart Development. Bill Boyd, an SVP in the Los Angeles office of Grubb & Ellis who was leasing agent for the building when he was with CB Richard Ellis in 1991, notes that the City Center site includes an adjacent parcel of approximately 1.5 acres that was not part of the Tishman Speyer purchase and is entitled for an additional office tower. Ohio State Teachers Pension Fund is believed to be negotiating to sell the parcel to a residential developer.

Boyd tells GlobeSt.com that the approximately 30% vacancy at the City Center building could go higher if Disney Stores exits when its lease expires this year. However, Boyd adds, the City Center building will not face competition from new office buildings in the city because nothing new is on the boards for the city within the next couple of years.

"Vacancy has been holding steady at about 13% in Glendale, and there is nothing that could be brought to the market in the next two or three years, so this building could fill the need for space during the next year or two," Boyd says. The Tishman Speyer website notes that the City Center building has one of the highest parking ratios in the Glendale market, 3.5 spaces per 1,000 sf of office space. The property also features unobstructed 360-degree views of the surrounding mountains and Downtown Los Angeles.