Media production office complex sells for $62M
Pendulum Property acquired 125K-sf property in Burbank from Fortress and Ocean West
While the overall Los Angeles office market has been battered by the pandemic, properties with a focus on media production have thrived.
The latest: Pendulum Property Partners paid $61.5 million for an office complex in Burbank, according to Commercial Observer.
Fortress Investment Group and Ocean West Capital Partners sold the 125,000-square-foot Link building at 2901 W. Alameda Avenue. The duo paid $45 million for the property in 2017.
The Link was built in 1981 and renovated in 2019. It is 76 percent leased to a handful of media production-related businesses, including visual effects firm Encore VFX and audio specialists Benchmark Post, according to the report. The building includes production-related amenities, including broadcasting, screening, and editing facilities.
The Burbank Media District and the surrounding area has seen steady investment over the last several years, including since the pandemic. Unlike the greater L.A. office market, demand has increased for production space and related office space.
Netflix signed a 171,000-square-foot lease at Burbank Empire Center last fall.
Blackstone Group and Worthe Real Estate Group are planning a 500,000-square-foot office tower outside Burbank and Warner Bros studios to cater to media businesses.
Several production studios elsewhere in Los Angeles are slated for expansions as well, including Universal Studios in nearby Universal City.
[CO] — Dennis Lynch