Buyers Pay $43M for Redevelopment Sites

The Glendale property is the Glendale Exchange and occupies a 1.4-acre site where buyer 1027 Wilshire Associates LLC of Hollywood plans a repositioning. The new owner acquired the property from Glendale Exchange MW of Florida for $22.5 million, according to CB Richard Ellis brokers who represented the seller.

The CBRE brokers note that the Glendale Exchange site is planned as a repositioning effort to fit into the City of Glendale's vision for a mixed-use urban village epicenter, which includes high-profile projects such as the soon to be completed Americana at Brand being developed by Caruso Affiliated of Los Angeles. The seller was represented by Dan Riley and Sam Alison of the CB Richard Ellis Private Client Group, along with Geoff Martin of CB Richard Ellis brokerage.

The Glendale Exchange is 100% leased, with a tenant roster that includes a 10-screen Mann Theater that occupies almost 54,000 sf in two buildings, along with a 6,000-sf Tony Roma's restaurant. The new owner has yet to complete redevelopment plans, but the CBRE brokers report that the options include the addition of a multifamily component that would support the increased demand for Downtown Glendale living, in addition to retail and office.

Riley says that the Glendale Exchange "is well-positioned to benefit from being part of the urban, mixed use village concept that the city of Glendale envisions for this area." Pointing out that Glendale "has followed a well-orchestrated approach to encouraging new business and development," Riley says that the property represented "an opportunity for a buyer to come in and take advantage of stable in place income while planning for a repositioning of the property in the next three to four years."

In the Culver City deal, a local Southern California developer acquired Culver Plaza, a 49,986-sf retail and office property on 41,953 sf for $20 million. According to the Grubb & Ellis brokers involved in the deal, the buyer plans to redevelop the property, which was 35% occupied at the time of the sale.

Culver Plaza is a two-story building that is occupied by tenants Curves and El Pollo Loco. The second floor, which totals approximately 26,000 sf, was recently vacated by Mann Theaters. The property also includes 360 subterranean parking places.

The sale was brokered by Ken McLeod, David Ghermezian, David Lachoff and Tom Lagos of the West Los Angeles office of Grubb & Ellis, who represented the buyer and the seller, 9901 Washington LLC. McLeod points out that the second-floor space can accommodate many alternative uses, including office, retail or loft, and may allow for additional square footage through vertical development.