Los Angeles-Long Beach, CA (1888PressRelease)
April 08, 2009 - Burbank Airport Center – 2575 North Hollywood Way, Burbank, Calif.
Colliers Vice President, Kyle R. Miller, represented the buyer in a 1031 exchange sale at 2575 North Hollywood Way in Burbank, Calif. The property sold for $4.3 million approximately $725 per square foot, at a cap rate of 5.8%.
“The key to this transaction was the location. The tenants, McDonalds and Panda Express, enjoy high visibility at the Burbank Airport entrance/exit and frontage along Hollywood Way,” said Miller. “We were successful in helping our buyer understand the value in the location and the corporate-backed leases.”
Burbank Airport Center was built in 2008 and includes tenants such as Denny’s, Del Taco, Starbucks, and Subway. According to Miller, the property was in the process of being parcelized when it went under contract. “Though the process took longer than anticipated, the buyer believed in the developer and the project. The project worked its way through the city, the leases were amended and we successfully closed with two weeks before the expiration of the 1031 exchange.”
The buyer was a private capital investor, Lin Revocable Family Trust. Along with Miller, Colliers’ Tom J. Lagos and Ben Siegel represented the buyer. The seller, Zelman A-1 LLC, was represented by Studley brokers Bill Bauman and Bill Legier.
5400 Cherry Avenue, Long Beach, Calif.
The second transaction closed was located at 5400 Cherry Avenue in Long Beach, Calif., at the corner of Cherry Avenue and Market Street. The 13,680 square-foot Walgreen’s Pharmacy sold at a price of $6.85 million, approximately $500 per square foot. This sale marked the first Walgreen’s sold in Southern California at a cap rate of 7%.
“Though we are in a challenging market, our buyer was able to purchase the property on an all cash basis, allowing us to negotiate a 7% cap deal,” said Ben Siegel, associate in Colliers’ Downtown Los Angeles office. “At the time of closing, that marked the highest cap rate paid for a Walgreen’s in Southern California in many years.”
According to Siegel, “the buyer was looking for a passive, long-term investment and this newly constructed Walgreen’s was a perfect fit.” The property was built in 2009 and Walgreen’s recently took occupancy.
Along with Siegel, Colliers’ brokers Tom J. Lagos and Kyle R. Miller represented the buyer, Michaelian & Michaelian LP, in the transaction. The seller, Cherry Market Rx Corp., was represented by Don Emas of Marcus & Millichap.
About Colliers International
Colliers Macaulay Nicolls Inc. (CMN) operating as Colliers International is a leading global real estate services company that provides a full range of services to real estate users, owners and investors worldwide. Colliers operates in 293 offices in 61 countries. Services include brokerage, property management, hotel investment sales and consulting, corporate services, valuation, consulting and appraisal services, mortgage banking and research. Colliers International is a worldwide affiliation of independently owned and operated companies. Locally, Colliers professionals serve clients throughout Greater Los Angeles. Find out more at www.colliers.com/losangeles.
For further information please contact:
Rebecca Hames
Marketing Coordinator
Tel: 213 532 3231
Email: rebecca.hames ( @ ) colliers dot com
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