Onni Group picks up Glendale Center for $83M

MPG lost building to creditors following $125M loan default

Mar.March 01, 2017 12:00 PM
611 N. Brand Avenue (Google Maps)

Canadian developer Onni Group acquired a Glendale office building formerly owned by MPG Office of Los Angeles for $83 million, or $217 a square foot, The Real Deal has learned.

Special servicer LNR Partners took over the Glendale Center in 2012 after MPG defaulted on a $125 million CMBS mortgage securitized through Wachovia Bank Commercial Mortgage Trust. LNR tapped Eastdil Secured to market the 14-story property in October. 

The 390,000-square-foot building, at 611 N. Brand Boulevard, is 95 percent occupied. Its tenants include YP Holdings, formerly Yellow Pages, which has its digital business there, and Walt Disney Co.

Maguire Properties, MPG’s predecessor, paid $71.1 million for the center in 2003. The property was constructed in 1973 and renovated in 1996.

The building was appraised in March at $91 million, or $233 a square foot, according to a servicer report.

Onni has been on an L.A. shopping spree in recent months. The company also acquired the L.A. Times building, at 202 W. 1st Street, last fall and unveiled plans to build a 1,127-unit two-tower complex on the site as well as shops and restaurants, The Real Deal previously reported. It is also planning a 48-story tower at 1000 S. Hill Street in South Park.

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