(EDITOR’S NOTE: The property sold for approximately $493 per square foot.)
Los Angeles, CA (May 25, 2021) — Newmark Knight Frank (“Newmark”) announces it has arranged the sale of The Link, a recently renovated seven-story, Class A office building located at 2901 West Alameda Avenue in Burbank, California. Totaling 124,785 square feet, the property features creative office space and post-production, broadcasting, screening and editing facilities.
Newmark’s Co-Head of Capital Markets Kevin Shannon, Executive Managing Directors Ken White and Rob Hannan and Senior Managing Director Laura Stumm represented the seller, a partnership between Fortress Investment Group and Ocean West Capital Partners. The buyer was Pendulum Property Partners. Acquisition financing was arranged by Newmark’s Vice Chairman David Milestone, Senior Managing Director Brett Green and Associate Director Henry Cassiday.
“Buoyed by persistent demand from content creation providers and synergistic post-production servicers, the Burbank Media District’s vacancy rate has dropped to sub 4 percent,” said Shannon. “Investor demand for this high conviction theme mirrors the intensity of the tenant demand, making Burbank one of the hottest office submarkets in Los Angeles right now.”
Hannan added, “If anybody doubted the resiliency of the entertainment industry or its status as LA’s guiding light, the pandemic has erased any hesitation and Burbank is Exhibit 1-A. As the epicenter and backbone of LA’s expansive entertainment infrastructure, Burbank has benefited tremendously from the explosive growth of content providers, streaming or otherwise.”
The property, located at 2901 W. Alameda Avenue, recently underwent an extensive renovation in 2019 and features a collaborative outdoor courtyard, redesigned lobby, enterprise-grade dark fiber connectivity, revitalized exterior, 13’-18’ ceiling heights, and an exclusive 2,500-square-foot outdoor patio on the 7th floor. The property is currently 76 percent leased and home to five tenants.
The Burbank Media District is an elite subset of 13 Class A buildings totaling 3.5 million rentable square feet, according to Newmark Research. The Burbank Media District currently boasts the lowest vacancy rate in the Los Angeles office market at 3.8 percent. The submarket is fueled by demand from an ever-growing entertainment industry and tremendous backlog of content creation and production due to the pandemic. Tenant velocity is expected to continue due the area’s quality office product, plentiful amenities, and surrounding major film and television studios.