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LOS ANGELES-An LLC called 1101 Glendon Ave. has signed a 60-year, triple-net property land lease valued in excess of $25 million for a retail and office building of more than 16,000 sf in Westwood Village that is 100% occupied, according to the Charles Dunn Co. The lease, which includes control rights to the mixed-use building, holds what managing director Paul Kenworthy of Charles Dunn’s investment services group describes as upside potential in light of below-market rents and other features of the deal.

Kenworthy explains that the parcel on the corner of Kinross and Glendon avenues at 1101 Glendon Ave. is occupied by tenants paying rents below market value at an average of $2 per sf, while the going rate in that area is $3.50 to $4 per sf. Kenworthy represented the lessor, Chan Family Trust, with 1101 Glendon Avenue LLC represented by Doug Payne of Charles Dunn’s retail services group. Kenworthy and Payne are based in Charles Dunn’s West Los Angeles office.

The two-story, 1930s-style brick building sits on approximately a quarter-acre of land, with the retail portion of the building occupying approximately 4,000 sf and the office portion 16,000 sf. Tenants include two jewelry stores, three restaurants and four boutique office suites, with all of the tenants described by Kenworthy as “long-term occupants who like the area because of its high traffic and visibility.”

Kenworthy comments that the land lease provides 1101 Glendon Avenue LLC with a developed, 100% occupied income-producing property while the Chan Family Trust “gets a steady stream of income without the responsibility of property management, building maintenance, taxes and insurance.” Over the course of the 60-year lease, the potential for garnering higher rents “is immense,” he says.

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