By Lilly Riddle
A new opportunity to invest in an industrial Burbank property has opened up with a 36,407-square-foot listing located at 10717 Vanowen Street. The property sits on a 1.71-acre site and has an asking price of $14 million — roughly $385 per square foot. The location, based on the details provided by the marketing document distributed by CBRE, generates around $842,452 in net operating income, making the cap rate on the asset around 6 percent.
This industrial building, built in 1977, is located in the city’s Media District and sits directly across from the Hollywood Burbank Airport and in close proximity to Interstate 5. According to the listing, the property’s 30-mile radius is occupied by approximately 9 million people, and the area generates around $14 billion in e-commerce sales annually within an hour’s drive. Some of the property’s well-known neighbors include Disney/ABC, NBC/Universal, WarnerMedia and Dreamworks.
The property is owned by Longpoint Realty Partners, which has owned the asset since December 2020. The company paid $8.25 million for the building at that time, according to public documents.
The single-story property is presently 100 percent leased through January 2029 to Pacific Title Archives, a film and video media asset management company. This entity — which, according to its website, preserves video, audio, motion picture film, records, digital media and other media assets — has been the building’s tenant since 2008.
The property also has several features listed in the marketing offering. It has two dock-high and two ground-level floors, 61 parking spaces with an HVAC system in the entire building. The warehouse portion of the property is earthquake retrofitted, according to the offering document.
The industrial market in the North Hollywood/Burbank area where the building is situated has seen some growth over the past year, as well as lower vacancy rates than the Greater Los Angeles region as a whole, according to industry reports. The North Hollywood neighborhood has maintained an average vacancy rate of 0.4 percent over the past 10 years, as well as 14.1 percent rent growth year-over-year in the fourth quarter of 2023, according to the listing. Meanwhile, the Greater LA market was characterized by increased vacancy rates and negative net absorption in the first quarter of 2024, according to the Greater Los Angeles Industrial Research Report 2024 Q1 from Colliers. According to Colliers, Los Angeles County — in which Burbank and North Hollywood sit — saw an increase in the vacancy rate from 2.6 to 2.9 percent quarter-over-quarter. It also saw a negative net absorption of 1.7 million square feet.
Anthony Delorenzo, Mark Shaffer, Joe Cesta, Eric Cox, Bryan Johnson and Nick Williams of CBRE are leading the marketing efforts for this property.
