January 3, 2023 12:00 PM
Newmark announces it has arranged sale of 2777 North Ontario Street, a 127,140-square-foot office and industrial campus located in Burbank, California. The asset sold for $37 million.
Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Ken White and Rob Hannan, Senior Managing Director Laura Stumm and Associate Director Michael Kolcum represented the seller, a joint venture between Washington Capital Management, on behalf of their client, and SSV Properties, in the transaction. The buyer was Montana Avenue Capital. Newmark Vice Chairman David Milestone and Senior Managing Director Brett Green arranged the acquisition financing on behalf of the buyer.
The sale of 2777 North Ontario marks Newmark’s third office sale in the Burbank market in the last 18 months. Previously, in 2021, Newmark completed the sales of 2901 Alameda Avenue and 2600 Olive Avenue, respectively.
“Montana Avenue Capital’s acquisition of 2777 Ontario is yet another example of private capital looking for an attractive entry basis in a desirable office market which Burbank is,” said Shannon. “In addition to its highly improved office space, the asset includes a uniquely specialized industrial component in one of the nation’s tightest industrial markets.”
“2777 Ontario plays directly into the prominent and compelling investment thesis to invest in the content creation industries,’” added Hannan. “The entirety of the rent roll is closely aligned with Burbank’s identity as the entertainment capital of the world.”
2777 North Ontario Street is a newly renovated, two-story office and industrial campus that is 71% leased to a diverse tenant roster, comprised entirely of entertainment and media-related companies. The property’s office tenants, headlined by prominent post-production firm, Eikon, occupy two office suites totaling 79,312 square feet. The industrial component is leased to Iron Mountain, which utilizes its space to store valuable film and other media content and occupies 47,828 square feet.
Led and overseen by SSV Properties, 2777 North Ontario recently completed a comprehensive $7 million-plus renovation. New property features include revitalized common areas, updated HVAC and MEP systems, completed seismic retrofit, remodeled bathrooms, resurfaced parking, operable windows and skylights, new landscape and hardscape and revitalized branding and color scheme.
The property’s Burbank location offers immediate access to some of the nation’s top production studios and media companies, including ABC, Disney, NBC Universal, Warner Brothers and DreamWorks. Located off of I-5, the property is proximate to a wealth of amenities, including the Hollywood Burbank airport, restaurants, retailers and hotels as well as a wide array of public transportation.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of approximately $3.1 billion for the twelve months ending September 30, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 180 offices with nearly 6,700 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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