Lee & Associates-LA North/Ventura Transacts Value-Added Commercial Property Sale
Multi-tenant property trades for $389 per square foot in Burbank, CA
BURBANK, CA – SEPT. 24, 2019 – A multi-tenant commercial building at 3601 Magnolia Blvd. in Burbank, CA has traded for $5,450,000 or $389 per square foot, according to Scott Romick, managing director of Lee & Associates-LA North/Ventura, who represented the seller, and Lee Principal Cory Stehr, who represented the buyer in the transaction.
“The property had been owned by the same family for over 50 years, and, along with the location in a prime commercial stretch of Burbank, and the unit types, offered tremendous upside in rents,” Romick said. “As a result, we targeted our marketing to value-add buyers who would see the long-term potential of this core asset.”
The 14,000-square-foot property consists of office and retail suites averaging 325 square feet laid out along a courtyard, each with a separate entrance. It is located just off Hollywood Way across the street from the highly popular Porto’s restaurant. It was fully leased at the time of the acquisition.
“The small suite sizes are highly unusual for any submarket and especially in this highly desirable Burbank neighborhood,” Stehr added. “The buyer is confident that he can achieve significant rental rate increases as is and capture new tenants for different uses down the road.”
The seller is Burr Family Trust and the buyer is a private investor, Arash Danialifar.
“We received multiple offers on this asset,” Romick said. “But the key to the success of this transaction was that the buyer delivered on his promises and on time as well. It was a pleasure to work with him.”