Archstone Communities Trust last week bought a 450-unit apartment complex in Studio City for $58.5 million the second-highest price ever paid for a San Fernando Valley apartment building.

The seller was Cleveland-based Forest City Development, which built the Studio Colony Apartments in 1987. Considered one of the premier complexes in the Valley (and where entertainment types live while waiting for their homes to be built), it sits at the corner of Vineland Avenue and Bluffside Drive, one block north of Ventura Boulevard.

Studio Colony consists of six interconnected buildings with a pool, spa, gym and security guards at the entrance. It is 98 percent occupied, with rents up to $1,300 for one-bedroom units and up to $1,650 for two-bedrooms.

“It’s in very good condition, however the buyer plans to renovate the project and bring it up to a higher level of luxury,” said Ron Harris with Marcus & Millichap, who represented the parties along with Vince Norris of Delson/Norris Investment Properties.

They said there were multiple offers on the property, even though it was unlisted. Vacancy in the South Valley runs only 1.7 percent, according to multifamily advisory firm Hendricks & Partners.

Archstone, a real estate investment trust headquartered in Colorado, had been seeking development opportunities around the area. But because Los Angeles is so built out, those opportunities are almost nonexistent, Norris said. However, Legacy Partners plans to build a 200-unit complex on an adjacent piece of land.

By the way, the largest Valley apartment deal was the $64 million purchase of a 663-unit Woodland Hills complex by Bay Apartment Communities in 1997, Harris said.

Mega Renewal

In a huge shot in the arm to Century City, Fox Entertainment Group signed a new 15-year lease at Fox Plaza.

The deal is for 316,000 square feet, or 42 percent of the prestigious office tower near the Fox lot. Fox has occupied space there since the building was constructed in the mid-1980s and gradually expanded over the years.

The total value of the deal: $275 million, which is the biggest in terms of dollar value in a long time.

At one point, Fox had considered other options on the Westside, but the choices were far and few between and rents have been escalating. In the end, renewing made the most sense economically and presented the least disruption.

Cushman Realty Corp. represented Fox, while Gary Weiss, J.D. Cook and Jeff Strnad of DLJ Realty Services represented landlord Marvin Davis.

Frederick’s Sold

The famed Frederick’s of Hollywood building has a new owner: West L.A.-based real estate investor Jeff Greene.

Greene purchased the 66,000-square-foot Hollywood Boulevard property for $4 million, sources said. The property includes retail and office space and a freestanding warehouse that could be converted to creative office space. The 63-year-old building, which has distinctive pink awnings, is listed on the National Register of Historic Places.

“I feel like I’m buying a piece of history,” Greene said. “I can watch it become part of a revitalized area again.”

Greene said he got interested in Hollywood when he heard about all the redevelopment taking place. His firm also owns apartment buildings nearby, in the Fairfax and La Brea area.

“Being a believer in Hollywood, I want to see it recover and become the primary retail area of L.A. I think it will be,” Greene said.

While Frederick’s has leased back its space for a time, it plans to move in a couple of years to a bigger flagship store inside a new development immediately west of Mann’s Chinese Theatre called Hollywood Orangeland. The store will encompass 30,000 square feet, with retail space and a lingerie museum. Frederick’s also plans to move its corporate offices in June to Wilshire Boulevard near Fairfax, said spokesman Seth Jacobson.

“We’ve outgrown the building. We’ve been there 40 years,” he said.

Greene said he plans to restore the office interiors and tear out the suspended ceilings to create a more open feeling.

Michael Malick and John Tronson of Ramsey-Shilling Co. represented both parties in the deal and are marketing the property.

West Valley News

Moshe Silagi’s Canwood Corporate Center in Agoura Hills has signed several deals.

Cicero Systems, a network service location and co-location provider, leased 25,000 square feet in a 10-year deal valued at $5.4 million. And Reservation Center Inc., which operates a call center for travel agents in Woodland Hills, leased 12,000 square feet in a deal valued at $1.4 million.

With financial and tech companies also about to sign leases, the 50,000-square-foot spec building is pretty much spoken for.

Silagi, a prominent Conejo Valley developer, sold a large portfolio about two and a half years ago to Arden Realty Inc., then bought about 15 acres of land in Agoura Hills for further development.

Canwood, the first new building to have broken ground in Agoura in at least 10 years, will be finished May 1. Construction will also start on phase two, a twin 50,000-square-foot building that is partially pre-leased.

Darryl Zilberstein and Tony Principe of Westcord Commercial Real Estate Services represented the landlord. Bryan Lewitt of Cresa Partners represented Reservation Center.

Lease Deals

IHOP Inc. will gradually expand and relocate its corporate headquarters to 450 N. Brand Ave. in Glendale, from 525 N. Brand. IHOP signed a 10-year lease for 70,000 square feet, valued at $18 million. Stephen Walbridge and Stephen Barker of Julien J. Studley represented IHOP and Wayne Haight and Greg Galletly represented landlord Dorn-Platz in-house.

Knowledge Universe, a private education services company founded by Michael Milken, signed a six-year lease for 19,423 square feet at Westwood Center. Bruce Schuman, Arlene Sommer and Janice Cimbalo of Studley represented the tenant and Eric Hasserjian represented landlord Arden.

Elizabeth Hayes can be reached at (323) 549-5225, ext. 229, or at [email protected].