A fully leased, post-production facility in one of the top media markets in Los Angeles County has traded hands.
The 95,000-square-foot property in Burbank, Calif., is occupied by Deluxe Media Inc., which does distribution and asset management for the entertainment industry with clients like Netflix (NFLX), Amazon (AMZN) and Apple (AAPL). A partnership between Cruzan and Independencia Asset Management acquired the facility from Strategic Office Partners for $37.4 million, according to CBRE (CBRE), which brokered the deal.
SEE ALSO: Alexandria Real Estate Sells NoVA Lab for $80.5M
The transaction pencils out to roughly $395 per square foot. Property records show it last traded for $21.5 million in 2016, or about $226 per square foot.
The facility was renovated in 2017. It’s located on 4.4 acres at 2130 North Hollywood Way near a district of other offices and facilities that are leased or owned by companies like Walt Disney Co. and Warner Brothers.
Pendulum Property Partners recently acquired The Link property in Burbank, with its popular post-production, broadcasting, screening and editing facilities, for $61.5 million. And, a year ago this month, Netflix signed a 171,000-square-foot lease about one mile from Deluxe.
CBRE’s data shows office and post-production leasing remains most active in submarkets like Burbank and Culver City, which boast content production-oriented tenants and modern office space.
“Burbank has been one of the best-performing submarkets in Greater L.A. over the last couple years, propelled by the growth within the entertainment business and demand for streaming content.,” CBRE’s Mike Longo said.
Longo and CBRE’s Todd Tydlaska and Sean Sullivan represented Strategic Office Partners.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
