Eikon Group Leases 20K SF in Former Lockheed-Martin Facility in Burbank
Eikon Group, a post-production company headquartered in London and known for its technical work on films such as Blade Runner 2049 and Spider Man: Homecoming, is relocating its Burbank, Calif. office.
Eikon signed a 10-plus-year lease for 20,000 square feet at 2777 North Ontario Street near the Hollywood-Burbank Airport for a total rent of $8.1 million, according Kyle Stanich, an associate vice president at Colliers (CIGI) International, who along with Nico Vilgiate represented EIKON and the property owner, SSV Properties, in the deal. While Stanich wouldn’t disclose the exact price per square foot, he said it is in line with market comps for the area, which range from $3 to $3.35 per square foot.
Currently located at 306 East Alameda Avenue in Burbank, Eikon is expected to make the move by September.
El Segundo, L.A.-based SSV Properties purchased the property, a former Lockheed-Martin facility, in 2007 for an undisclosed sum and recapitalized the property in 2015. SSV sunk $5 million of renovations into the 132,000-square-foot property to turn the former industrial building into a creative office space that appeals to an influx of media and entertainment clients in the Los Angeles market, David Jordon, CEO of SSVP told Commercial Observer, following the departure of two long-term tenants, Point 360 and Reliance Media. Property upgrades included repositioning the outdoor courtyard, entryway, lobby, elevator, bathrooms and building exterior, as well as updating the HVAC and building systems and installing skylights and operable windows. In addition, SSVP is working with Eikon, which will occupy space on the ground level, to remove part of the mezzanine to create a state-of-the-art theater.
“Everyone thinks Hollywood is the entertainment capital of the world, but in our opinion and as time has told, Burbank definitely is,” Stanich said. “There’s attractive business incentives that operate in Burbank. There are no gross receipts taxes so it’s cheaper to operate your business in Burbank than it is in Los Angeles or Culver City.” (A gross receipts tax is levied against the receipts of a sale that results in a change of ownership.)
Eikon is the first company to lease at the property since the property upgrades. Stanich, who said major studios and gaming companies have expressed interest in taking space in the building, anticipates that his company will lease the remaining space by the end of the year.
Eikon did not return calls for comment.