LA Post-Production Facility Trades for $37M

2130 N. Hollywood Way. Photo courtesy of CBRE

Creative office continues to be a top-performing property type in Los Angeles’ road to recovery. A partnership of Cruzan and Independencia Asset Management has acquired a post-production facility in Burbank for $37.4 million. Strategic Office Partners sold the fully leased property, which it owned since 2016.

Cruzan owns several office properties across California markets, including Los Angeles, Orange County and San Diego. This marks the first acquisition in the market for the Latin American investment firm, Independencia Asset Management, which owns office properties in Boston and Pittsburgh.

The partnership acquired the facility at roughly $393.6 per square foot, on par with the metro’s average of $343, recorded in year-to-date sales through July, CommercialEdge data shows. Demand for creative office in markets like Burbank currently leads construction activity in the metro.

CBRE’s Senior Vice President Michael Longo and Executive Vice Presidents Todd Tydlaska and Sean Sullivan represented the seller in the deal. A different CBRE team of Senior Vice President Greg Grant and Associate Clayton Matsuda facilitated a loan on behalf of the buyer.

High demand for media production

The 95,000-square-foot building last traded in 2016 for $21.5 million, CommercialEdge data shows. Previous owner Strategic Office Partners is an investment platform by TPG Real Estate and Gramercy Property Trust, created in 2016 to target single-tenant assets in high-growth U.S. metros.

The single-story office property is located at 2130 N. Hollywood Way, roughly 3 miles north of Warner Bros. Studios. The 4.4-acre campus was constructed in 1965 and underwent a renovation in 2017. Deluxe Media Inc.—a post-production, distribution and asset management company for the entertainment industry—is the sole tenant of the building. According to CommercialEdge, the space is leased through July 2026.

Nearby submarkets like Burbank, Culver City and North Hollywood have been in high demand this year, with creative space for media production sold at a premium. In May, Pendulum Property Partners acquired a seven-story creative office property for $61.5 million, in Burbank. Roughly 5 miles north of Cruzan and Independencia’s new asset, Hudson Pacific and Blackstone partnered to build Sunset Glenoaks Studios, another studio facility, estimated to cost between $170 and $190 million to develop.