Falcon Advises on Purchase of Burbank, CA Property
Falcon Real Estate has acted as investment advisor in the purchase of the IDT Entertainment Plaza, 2950 North Hollywood Way, Burbank, California for $42,500,000. The purchase of the property closed in December 2005 on an all-cash basis, but a $27,500,000 first mortgage loan was taken in March 2006 from Eurohypo AG New York.
This is a 155,042 square foot, three story office building that is situated on an eight-acre parcel. Surface parking is provided at an above standard ratio of five spaces per 1,000 square feet of office area. The building was constructed in 2001 and is approximately 99% leased to an impressive group of five tenants that include IDT Entertainment/Film Roman, Starbucks Corporation, and Lockheed Martin. IDT Entertainment/Film Roman, the lead tenant at the property, has committed to occupy 72% of the building under a firm ten-year lease that includes annual rental rate increases of 2.5%. Rental payments under the lease will commence in July 2006.
Adam Doud, Falcon's acquisition representative for the West Coast, commented, "This is a very attractive purchase for our client since the building is of relatively recent construction, there is an outstanding group of tenants, and we anticipate increasing income over a projected ten-year holding period. We are continually attempting to find other similar properties for our clients."