67,611-Square-Foot Owner/User Investment Opportunity the Offering
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Burbank, CA 67,611-SQUARE-FOOT OWNER/USER INVESTMENT OPPORTUNITY THE OFFERING Newmark Grubb Knight Frank (NGKF), as exclusive advisor, is pleased to present the opportunity to acquire the fee simple interest in 7590 North Glenoaks (the Property), a 67,611-square- foot office building located in Burbank, California—the Media Capital of the World. The Property is currently 88% leased to technology, media and marketing companies, that include existing ownership, and a weighted average lease term of only 3.16 years, providing a user the flexibility to define its space requirements. With in-place rents nearly 15% below market, an investor has the opportunity to enhance returns by increasing rental rates as they naturally expire. PROPERTY SUMMARY Asking Price $16,900,000 7590 North Glenoaks Address Burbank, CA 91504 Rentable Building Area 67,611 SF Flexible; up to 17,217 SF available for a user Available Space immediately; up to 53,635 SF over three years Site Area 3.93 Acres APN 2401-042-012 Year Built 1985 Stories Two—plus basement Typical Floor Size ±25,000 SF Parking 210 parking spaces (3.11/1,000 RSF) INVESTMENT HIGHLIGHTS OWNER-USER INVESTMENT OPPORTUNITY WITH FLEXIBLE TERMS 7590 North Glenoaks provides a user the opportunity to own its office space with the benefit of stable, near-term income support from an existing tenant base. The Property can accommodate a user as small as 7,818 square feet, or as large as 17,217 square feet initially, which could increase to up to 53,635 square feet over three years. HIGH-TECH HEADQUARTERS BUILDING 7590 North Glenoaks is a two-story, 67,611-square-foot office building that features a dramatic two-story lobby, an on-site cafeteria, and above standard mechanical systems. The building was once fully owned and occupied by Condusive Technologies, and includes three separately cooled server rooms, a test lab, and a brand new backup generator to accommodate the needs of today’s most advanced technology and entertainment companies. The Property is situated in a lush park-like setting on a nearly four-acre site that provides additional privacy for more security conscious tenants. STABLE INCOME STREAM WITH UPSIDE With an existing occupancy level of 88% and in-place rents that are 15% below market, investors benefit from a stable near-term income stream with the potential for income appreciation created by a robust outlook for future rent growth in Burbank. With more than 83% of the rent roll expiring in the first three years, 7590 North Glenoaks provides investors with the opportunity to implement a repositioning strategy that capitalizes on the upcoming rollover in a submarket that is 9.6% vacant . FLEXIBLE AVAILABILITIES BASEMENT ±17,217 square feet available immediately. Up ±1,220 SF AVAILABLE to ±53,635 square feet over three years. Available BluePrint BluePrint Editing Bay BluePrint Editing Bay Available BluePrint Editing Bay ON-SITE AMENITIES Receiving • Cafeteria • Access to editing bays Storage • 24-hour security Loading • Highly secure key card entry • Private bathroom BluePrint Editing Bay Engineering • Backup generator with auto transfer switch Room Fire Control (ideal for media/tech tenants) Main Electrical Room Room • Private kitchen • Cooled server rooms and test lab FIRST FLOOR SECOND FLOOR ±600 SF AVAILABLE ±15,397 SF AVAILABLE Available Available Available FLOOR PLANS MAJOR STUDIO HEADQUARTERS LOCATED WITHIN 3 MILES OF THE PROPERTY Empire Center Restaurants Burbank Town Center BURBANK, THE MEDIA CAPITAL OF THE WORLD PROXIMITY TO A LARGE, HIGHLY EDUCATED LABOR POOL Comprised of Burbank, Pasadena and Glendale, the Tri-Cities Corridor is home to approximately 2.6 million people, with an additional 3.6 million residing in the surrounding San Fernando, San Gabriel and Santa Clarita valleys. These communities provide 7590 North Glenoaks with an immense, high-quality labor pool and a wide variety of housing alternatives for employees and executives alike. UNPARALLELED CONCENTRATION OF ENTERTAINMENT AND TECHNOLOGY COMPANIES Burbank is the epicenter of the global entertainment industry and home to major film and television studios including Warner Bros., Disney/ABC, Comcast’s NBC Universal, and The Burbank Studios. The convergence of media, entertainment, and technology sectors is resulting in growing demand from a multitude of tenants. A concentrated tenant base of more than 700 media related companies have created one of the healthiest submarkets in Southern California, with an average occupancy of 91% since 1997. PRO-BUSINESS ENVIRONMENT The city of Burbank has a pro-business attitude and features one of southern California’s healthiest and most competitive business environments. Burbank’s business advantages include no city income tax and no gross receipts tax. These business incentives— combined with the presence of major studios—have resulted in a remarkable synergistic attraction for media and entertainment tenants and service providers, creating consistently growing office space demand.This unique intersection of tech and 30% media promise significant growth opportunities. EXCELLENT ACCESS TO MAJOR OF BURBANK’S MODES OF TRANSPORTATION EMPLOYMENT IS 7590 North Glenoaks is located adjacent to the Golden State Freeway MEDIA-RELATED, (I-5) with ideal access to the Ventura Freeway (SR-134), Metrolink and Amtrak stations, and the Hollywood Burbank Airport. In addition, the PROVIDING MORE Burbank local transit train service shuttles commuters between local area THAN 60,000 JOBS employment centers and the downtown Burbank Metrolink station. NORTH HOLLYWOOD BURBANK North Glenoaks Boulevard INVESTMENT SALES CONTACTS LOCAL MARKET EXPERTS FINANCING CONTACTS KEN WHITE MICHAEL MOLL BRAD FELD DAVID MILESTONE Executive Managing Director Managing Director Vice Chairman Executive Managing Director T +1 310 491 2006 T +1 310 491 2016 T +1 213 596 2266 T +1 310 491 2015 [email protected] [email protected] [email protected] [email protected] CA RE #01788506 CA RE #01868818 CA RE #01011030 CA RE #01515842 LAURA STUMM ERIC ADAMS BRETT GREEN Managing Director Senior Managing Director Managing Director T +1 310 491 2020 T +1 310 491 2012 T +1 310 491 2009 [email protected] 2017 [email protected] [email protected] CA RE #01914207 CA RE #01349859 CA RE #01892016 Corporate License #01355491 March 2017 Corporate License #01355491 The broker for a purchaser of the property shall be entitled to receive a real estate commission only in the event that broker and the property’s owner execute a written commission agreement, containing the manner of calculation of that commission and all conditions to its payment, and the satisfaction of those conditions. Absent a written agreement to the contrary between that broker and NGKF, that broker shall not look to NGKF for payment of such a commission or any other compensation. Although all information furnished regarding property for sale, lease, or financing has been obtained from sources deemed to be reliable, that information has not been verified by NGKF and no express representation is made nor is any to be implied as to the accuracy thereof. That information is subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice and to any special conditions imposed by NGKF’s client..