LOS ANGELES—Shubin Nadal Realty Investors and DRA Advisors have collaborated to purchase the 44-acre Harman International Business Campus in the San Fernando Valley. The partnership plans to conduct a multi-million dollar renovation program to reposition the property, which currently consists of office and industrial space, into a creative office and retail park called the Campus.
“It is very rare to find a 44-acre parcel in the middle of the built out San Fernando Valley,” Lonnie P. Nadal, principal at Shubin Nadal, tells GlobeSt.com. “We will redevelop this property into a new, modern mixed-use campus with new retail, creative office and R&D space, while keeping the existing office buildings.”
This is Shubin Nadal’s first venture with DRA Advisors, which is providing equity for the project. According to Nadal, DRA has experience in all property types and has the ability to finance larger transactions, like this. Nadal, however, isn’t funding all of the transaction. The partnership has also secured a redevelopment loan through Wells Fargo for an undisclosed amount.
The 856,515-square-foot property is located in a prime San Fernando Valley area on Balboa Boulevard. Shubin and Nadal and DRA plan to demolish the property’s obsolete buildings to make way for “contemporary office and retail space.” The renovation project includes exterior work and the addition of outdoor amenities. “Shubin Nadal Realty Investors specializes in finding infill properties that require re-entitlement and redevelopment,” says Nadal. “This project is a perfect example of this.”
Marc Renard, Vice Chairman of Cushman & Wakefield‘s capital markets group, and his Cushman & Wakefield colleagues Manfred Schaub, David Hasbrouck and Lars Platt represented both parties in this transaction.
The area is getting a lot of attention from developers across property types. GlobeSt.com also recently reported that IAC is building a 1.3-million-square-foot industrial property in the Valencia submarket, only 10 minutes south of the San Fernando Valley.