Developer Buys Land for L.A. River Project

Overcoming opposition from environmentalists, a Foster City, Calif.-based developer has completed its purchase of 50 acres of a former railroad maintenance area next to the Los Angeles River and unveiled plans for its commercial redevelopment.

Legacy Partners, formerly Lincoln Property Co., and its financial partner, real estate investment trust AMB Property Corp., in May will break ground on the area known as Taylor Yard, beginning the first phase of a $78-million gated office and industrial complex that is intended to lure entertainment-related firms from Burbank and Glendale. The project, called Los Angeles Media Tech Center, will eventually include 12 office and industrial buildings with 744,000 square feet.

Some real estate industry sources say the name may be overly optimistic, considering the project’s gritty industrial location near the intersection of Interstate 5 and the Glendale Freeway and its distance from major studios and sound stages.

“Media and entertainment tenants do place quite a value on having the Burbank address,” says broker Michael J. Davin of Grubb & Ellis Co.

Others contend the business park could do well in light of the shortage of available commercial land in Los Angeles County. But they say it might be better suited to suppliers and such traditional distribution companies as FedEx, which has built a center nearby on San Fernando Road.

City and community leaders say any infusion of jobs is a welcome addition to the area, which now houses mainly transportation maintenance yards and small industrial shops.

“You’ve got a very successful developer doing this and sticking their neck out,” Mayor Richard Riordan said. “I’m convinced it can work.”

Legacy’s Bill Shubin said the company, which faced protest from environmental groups, including Friends of the Los Angeles River, is working with them to develop ways to mitigate storm drainage and other runoff from the site.