Music Publisher Cues Up New Office in Valley

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The largest music publisher in the world, Santa Monica’s Universal Music Group, signed a long-term lease in Woodland Hills for a whopping 146,600 square feet, the largest nonrenewal lease by square foot signed in the San Fernando Valley this year.

The company, which will keep its headquarters at 2220 Colorado Ave. in Santa Monica, will consolidate two smaller existing offices in Woodland Hills into one large office at LNR Warner Center. Universal Music will move to the seven-building office park in February, taking over four upper floors in the five-story building at 21301 Burbank Blvd.

Terms of the lease were not disclosed, but according to data provider CoStar Group Inc., average annual rents in the building are $31.80 a square foot. At that rate, a 10-year lease for the space Universal Music will occupy would be valued at more than $46.6 million.

Paul Stockwell, a senior vice president for CBRE Group Inc. who represented the tenant in the deal, said the music giant got what it wanted.

“UMG’s goal was to relocate all their San Fernando Valley employees to one high-quality building with easy access, plentiful amenities and owned by a long-term institutional landlord,” he said.

Houston landlord Hines purchased five of the seven buildings in the office park in 2006 for $311 million.

One of the two Woodland Hills offices Universal Music intends to consolidate is already in the office park, at 5820 Canoga Ave. When it moves, it will take over space formerly occupied by ATK Defense Electronic Systems, which moved to Chatsworth, and Internet company United Online.

Kevin Garabedian, vice president of administrative services for Universal Music, said the move has benefits other than simply getting employees in one building on contiguous floors.

“UMG will have ample parking, multiple expansion rights and signage opportunities, including building top and an exclusive monument,” he said.

Josh Leibowitz and Jeremy Charles of CBRE also represented the tenant in the deal; landlord Hines handled the deal internally.

Panorama Apartments

Village Green Apartments, a large complex with 201 units in Panorama City, sold for $22 million, or about $109,500 a unit.

John Chiu, a private investor from Newbury Park whose PJCF-T2 was the recorded buyer in the transaction, purchased the property from Lucille Hotnog of Blue Jay Group in West Hollywood. Hotnog purchased the property in 2004 for $19.2 million.

The Class B apartment building, built in 1972, sits on 2.4 acres and features 102 one-bedroom apartments averaging about 750 square feet and 48 two-bedroom apartments averaging about 900 square feet. It has 51 studio apartments that average 500 square feet. Onsite amenities include a clubhouse, pool and sauna, fitness center, laundry, picnic area and playground. Many of the units had been recently renovated.

The property, which was on the market for 170 days, was more than 95 percent occupied at the time of sale.

Hamid Soroudi, a senior managing director for Charles Dunn Co. who represented the seller in the deal, said his client benefited from current market conditions.

“The Panorama City multifamily market is strong, with vacancies currently under 3 percent and no new development under way,” he said. “The buyer was able to acquire a quality asset and has an upside potential of gaining additional income as rents roll and are brought up to market rates.”

The buyer represented himself in the transaction.

Revolving Doors

Coretrust Capital Partners, a real estate services company in Century City, has named Adam Lurie vice president. Lurie joined the company from Bank of America, where he was a vice president in its short-sale strategy group. He will handle acquisitions, financing, underwriting and other activities for Coretrust to support its growing portfolio. The company, which offers investment, development, management and operating services, was founded in the fall by former Thomas Properties Group Inc. executives Thomas Ricci, Randall Scott and John Sischo. … Encino-based Illi Commercial Real Estate has named J. Richard Leyner senior vice president. Leyner joined the commercial brokerage firm from the Encino office of NAI Capital Inc., where he was also senior vice president. Michael Haim Sharon, formerly a vice president for NAI, also joined Illi Commercial.

Staff reporter Bethany Firnhaber can be reached at [email protected] or (323) 549-5225, ext. 235.

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