A 20,000-square-foot warehouse building has traded for $4.6 million or $230 per square foot, setting a new price record in the city of Burbank, CA, according to Brett Warner and Hunter Warner, brokers with Lee & Associates-LA North/Ventura who represented the seller in the transaction.
Hechter Aircraft, an owner-user, sold the property, at 2517 N Ontario St., to CenterStaging, a rehearsal and backline facility for clients such as the GRAMMY awards and the Academy Awards.
CenterStaging, which occupies a nearby facility, is expanding to a second space.
The sale is the third the father-and-son team transacted in the east San Fernando Valley over the past 30 days.
“With vacancies at record lows and little new development on the horizon, industrial demand is soaring,” said Brett Warner, a Lee principal. “We were able to negotiate a full-price offer before the building was even listed, and we achieved the highest per-square-foot price we have seen for any building of 20,000-square-feet or more in Burbank.”
The tilt-up construction property features 20-foot clear heights and four ground-level loading doors with 2:/1,000 parking.
Matt Dierckman, a broker with CBRE, represented the buyer in the transaction.
“With lease rates rising, we’re seeing many business owners who would like to buy a facility and better control their overheard costs,” said Hunter Warner, “but the supply of available buildings, especially in the 5,000-square-foot to 20,000-square-foot range, is very, very limited.”
Industrial vacancy in the Los Angeles North region declined to a record low of 1.7 percent in the fourth quarter of 2016. Meanwhile lease rates have jumped an average $0.07 per square foot over the past year and currently average $0.80 per square foot.
In their second owner-user sale last month, the Warner team represented the buyer, Best Events Los Angeles, in the acquisition of a warehouse at 15030 Keswick St. in the Van Nuys submarket of Los Angeles for $3,991,680.
Best Events, an event planning company, acquired the 20,160-square-foot property for expansion and will utilize the warehouse for its operations.
The seller, BFS Investment Co., was represented by Kim Wolfson, Majik Industrial.
Financing was provided by Josh Warner at BFC and Chase.
In the third sale the team represented the buyer and seller in the sale of a 29,920-square-foot warehouse at 10830 Cantara St. in the Sun Valley submarket of Los Angeles.
The buyer, a private investor operating as 3884 Stoneridge LLC, acquired the warehouse, situated on a 1.2-acre lot with a large yard, three ground-level loading doors and two dock-high loading doors, for $4,000,000.
The property, which is leased to a prop company, was sold in an off-market transaction. The buyer is also the owner of a neighboring building.
The sellers of the property were Lori Gronich, Lynn Kelly and Lloyd Gronich. Financing was provided by Community Bank.