An office tower in Burbank has sold for $90.5 million in one of the priciest office deals in the suburban market at $592 a foot.
Dallas-based Granite Properties sold a 152,834-square-foot building at 2600 West Olive Avenue to Pacshore Partners, the firm announced on Monday. Newmark brokered the deal.
The property is 97 percent leased, benefiting from media-related companies amid booming demand for content creation, the firm said.
Granite Properties bought the 10-story office tower for $49 million in 2014, records show. The firm spent $2.7 million on renovations to the property, mostly to communal areas.
Brentwood-based Pacshore Properties owns a number of office properties across Southern California, including a 215,000-square-foot creative office portfolio across Playa Vista and Malibu, and a 150,000-square-foot office park in Santa Ana in Orange County.
The firm’s founder, Philip Orosco, said Pacshore has been “eagerly looking” to invest in Burbank office properties.
Investors have looked to Burbank in recent months, given the growth of media production and entertainment in the area.
In the third quarter, total vacancy rates across Burbank were 11.8 percent, according to Newmark. That’s compared to the 21.3 percent average vacancy rate across Downtown L.A. and the 20 percent vacancy rate in the neighboring city of Glendale.
Though one of the more expensive trades in Burbank in recent months, the sale didn’t reach the $106.6 million mark set by UBS Realty Investors in the third quarter. UBS sold a 234,000-square-foot complex to Prospect Ridge Advisors in October, though the price per foot was notably lower at $455 a foot.