Pendulum Property Partners Closes $62M Acquisition

The Link. Photo courtesy of Newmark.

Pendulum Property Partners has acquired The Link, a creative office in Burbank, Calif., for $61.5 million. A partnership of Fortress Investment Group and Ocean West Capital Partners sold the Class A asset. At the time of sale, The Link was 76 percent occupied by five tenants.

A team of Newmark brokers led by Co-Head of Capital Markets Kevin Shannon represented the seller in the transaction. The firm also arranged acquisition financing for the buyer.

The property traded at a 52 percent higher price than the previous acquisition. The joint venture initially acquired the property in June 2017 for $40.3 million from Lionstone Investments, CommercialEdge data shows.

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The Link is located at 2901 W. Alameda Ave. in Burbank’s Media District. The seven-story building totals 124,785 square feet and features post-production, broadcasting, screening and editing facilities. The building was constructed in 1985 and received a cosmetic renovation in 2005.

Previous ownership invested $4.9 million in renovations in 2019, according to Ocean West’s website. This included upgrades to the property’s infrastructure, a collaborative outdoor courtyard, an updated lobby and exterior, and a 2,500-square-foot patio on the property’s seventh floor. The Link also benefits from dark fiber connectivity and data center capabilities.

The area is an established entertainment hub, with some of the largest firms present, including Disney, Warner Brothers and Netflix. A large variety of shopping and dining destinations are also nearby, while downtown Burbank is about 2 miles away.

Burbank’s Media District has about 3.5 million square feet of Class A office space and currently features the lowest vacancy in the Los Angeles metro, at 3.8 percent, according to Newmark research. The pandemic has accelerated the entertainment industry’s growth, pushing up demand for creative office space.

However, the Los Angeles office market still has a long recovery ahead. The first quarter saw $523 million in sales activity, a CommercialEdge report shows, much lower than 2020’s activity over the same period, when $1.2 billion in office assets traded.