Granite Closes $142M Office Buy

The 21-story property is located at 550 N. Brand Ave. in Glendale.

LOS ANGELES— Granite Properties has acquired 550 N. Brand, a 21-story office tower in Glendale. The purchase price and the name of the seller were not disclosed, however, industry sources unrelated to the deal tell GlobeSt.com that Clarion Partners sold the property to Granite for $142 million. This is Granite’s third office acquisition in the Tri-Cities area, growing its portfolio in the submarket to 1 million square feet. “550 Brand fits right in our investment strategy wheelhouse: significant discount to replacement cost, significant discount to peak pricing, rents below peak levels, strong sub-market absorption, and a great tenant mix,” Tom Miller , Granite Properties managing director, tells GlobeSt.com. “There’s an outstanding mix of thriving businesses from all industry sectors, and Glendale in particular is experiencing a fantastic multi-family and retail renaissance. This is our third acquisition in Glendale and Burbank, bringing our portfolio to 1 million square feet of class-A office buildings.” The investor plans to infuse additional capital into the property for improvements. The improvement plans include renovations to the common areas, including the lobby, corridors, restrooms, and patio as well as to the exterior. The investor has also hired a property management staff. We plan to make significant improvements to 550 Brand in order to heighten our Customer’s experience,” adds Miller. “Our strategy is to create a best in class environment taking full advantage of the building’s great bones and also integrating it with our adjacent asset at 500 Brand. This will include upgrades to the main lobby, significant outdoor patio improvements, new bathrooms/elevator lobbies/corridors on the multi-tenant floors, and a new Brand Boulevard entry.” There was significant competition for the property, although Miller wouldn’t disclose the bidding process. He did say, “Eastdil was the Broker on the transaction and they always do an excellent job of creating a highly competitive environment.” Eastdil represented the seller, while Tom Miller and Paul Bennett represented Granite. The property is located in a highly desirable office market with direct access to the 134 Freeway and proximity to amenities. Granite believes the location, along with the growth in multifamily and retail , will help to create a diverse mix of tenants at the property.