Captiva Partners, Avalon Investment Co. and a private investor purchased two warehouses totaling 189,000 square feet in Atwater Village for $38 million, records show.
CBRE Group Inc. announced the sale but did not disclose the purchase price.
CBRE’s Matt Dierckman, David Harding, Greg Geraci and Billy Walk represented the buyer.
CBRE also represented the seller, Western Studio Services, which formerly occupied the facility.
The warehouses are located at 4561 Colorado Blvd. and sit on 7.3 acres.
The front structure is a 146,000-square-foot building with office space, warehouse space, and an upper deck and community room.
The 43,000-square-foot building in the back is an open floor plan with high ceilings. This, according to CBRE, makes it “ideal for potential future soundstage uses.”
CBRE added that the property’s location near Walt Disney Co.’s Grand Central campus and DreamWorks Animation’s Glendale headquarters would likely attract entertainment tenants wanting creative office and industrial space.
“The Burbank, Glendale, Atwater area remains one of the tightest real estate markets in Los Angeles County,” Harding said in a statement. “This project is ideal to meet the ever-increasing demand by entertainment companies and the insatiable need to produce more content.
“This property will provide new options for those companies looking for fresh creative office and creative industrial space,” he added.
L.A.’s status as an entertainment hub, some say, will help the real estate market here make a faster recovery than in some other cities.
Many streaming providers, including Netflix Inc. and Hulu, have large footprints in L.A. Those companies still need to produce content, which means soundstages, as well as industrial and office space to support their production efforts are all expected to fare well.
In the last few years, some of the biggest commercial real estate deals have been for entertainment-centric properties.
Last year, Culver City-based Hackman Capital Partners made two deals worth a combined $1.4 billion. First, the company closed on the iconic Television City studios for $750 million and then it purchased MBS Group with Square Mile Capital Management for $650 million, which included MBS Media Campus, also known as Manhattan Beach Studios.
And in July, it was announced that Blackstone Group Inc. would acquire a 49% interest in three Hollywood studios and adjacent office buildings owned by Brentwood-based Hudson Pacific Properties Inc.
The 2.2 million-square-foot portfolio is valued at $1.65 billion.
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