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The Weather's Cold, but Valley Sales are Hot

LOS ANGELES-December is barely half over, but investors announced the closing of more than $250 million of purchases in and around the sprawling San Fernando Valley. However, brokers say double-digit rents are coming to an end.

By Erin Cassin & David W. Myers | Updated on December 15, 2000

LOS ANGELES-December is barely half over, but investors have already announced the closing of more than $250 million of purchases in and around the sprawling San Fernando Valley, even as brokers say the area’s string of double-digit annual increases in office rents is coming to an end.

In Valencia, about a 15-minute drive from the Valley’s northern rim, Newhall Land & Farming Co. says it has sold four office buildings on Town Center Drive totaling nearly 400,000 sf to the California State Teachers’ Retirement System for $72.3 million in cash. The buildings include the corporate headquarters of Princess Cruises, which moved to the area in 1999 from pricier West Los Angeles.

CalSTRS bought the properties, which are more than 90% leased, through an investment program managed by LA-based Thomas Properties Group. Los Angeles-based Cushman Realty’s investment services group represented publicly held Newhall Land & Farming Co., which said in a statement said that the sale price is $7.8 million higher than its own cost to develop the buildings.

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