Japan College May Buy Site in Studio City

The campus of defunct Corvallis High School in Studio City may soon be turned into an American branch of a Japanese university, community leaders said Tuesday.

Secret negotiations between Catholic nuns who own the campus and an international trading company that is helping an Osaka university purchase it are expected to be completed in 5 weeks, those involved in the deal said.

The sale would end 1 1/2 years of speculation over the fate of the abandoned 46-year-old high school, viewed by many as one of the most valuable properties in Studio City.

Development Plans

Recent development suggestions for the 3.6-acre parcel on Laurel Canyon Boulevard 2 blocks south of Ventura Boulevard have ranged from a luxury townhouse project to an AIDS hospice.

Homeowners said details are sketchy about the deal. But they said they are encouraged that the proposal would apparently keep the site as a campus.

“On the surface, it seems like a good deal for Studio City,” said Polly Ward, president of the Studio City Residents Assn. “But until we get more details, we can’t say, ‘You have our blessings; please proceed.’ ”

Said Steve Sobel, one of many homeowners who has pressed for continued use of the site as a school: “We endorse the concept of what they’re trying to do. We feel it’s very compatible, in terms of reusing the school, which is what we’ve wanted.”

The Japanese university was identified as Osaka Sangyo Daigaku by Peter Lynch, a Los Angeles land-use consultant who said he has been approached by lawyers representing the buyers.

Michael Baskett, a spokesman for the Japanese consulate in Los Angeles, identified the school as a private university established in 1965. He said its name in English means Osaka Industrial University. He said the consulate has no knowledge of any plans by the university to buy the Corvallis site.

No Details Revealed

Those directly involved in the negotiations refused Tuesday to discuss details of the deal--including the name of the buyer or the rumored $7-million purchase price.

“All I can say is we’re in the middle of a business negotiation right now,” said Sister Kathleen Keleman, secretary to the provincial superior of the Sisters of the Sacred Heart of Mary, the Catholic order that closed Corvallis in 1987 because of declining enrollment.

It is Japanese style to maintain secrecy, said Mike Johnston, whose Los Angeles real estate brokerage company is assisting in the deal.

“Usually you hear about purchases by Japanese companies after the fact,” Johnston said. He said the university is being represented by the trading company, which in turn is being represented by his firm. He would not name the trading company.

“It’s a very good use of the school,” Johnston said. “It fits right in. They are a legitimate university that wants to expose Japanese students to Western culture.”

Dormitory Planned

Johnston said the university plans to build an 80-room dormitory on the Corvallis campus.

Ward said she has been told that the Japanese students will study in Studio City for 2 or 3 months at a time.

The university will need a zoning variance and a special permit from Los Angeles officials to build the dormitory, she said, adding that American representatives of the university plan to meet with Studio City residents next Tuesday.

Secrecy of the deal was criticized Tuesday by several real estate professionals involved in earlier proposed developments involving the Corvallis site.

“That site should be a residential development,” said Mort Allen, owner of a real estate firm who tried to sell the school to a condominium developer in March.

Allen said he was worried that the campus might be used by Japanese speculators who are snapping up U.S. property in increasing numbers.

“Now they will have a hotel for Japanese who want to come over here and buy real estate,” he said.