Developer to Buy DWP Headquarters

The Los Angeles Department of Water and Power has agreed to sell its San Fernando Valley headquarters to a real estate developer for $50 million and lease back a portion of the property for office space, city officials said Friday.

The Board of Water and Power Commissioners is expected to vote on the transaction at its Tuesday meeting, agency officials said.

Legacy Partners LLC, a national commercial and residential real estate developer, submitted the highest offer among multiple bids ranging from $35 million to $50 million, officials said.

The property, known as the Anthony Building, is a 315,204-square-foot, four-story structure on 33.5 acres at 8501 Arleta Ave.

Under the terms of the deal, the DWP will lease back 215,171 square feet at $1.25 per square foot a month for 10 years, officials said. The grounds are not part of the sale and will remain under agency ownership.

DWP operations--including the customer call center, computer center, water quality lab, data control center and telecommunications room--would remain at the site if the sale is approved, officials said. However, those operations are expected to be relocated some time during the lease period.

Previously, the Los Angeles Police Department and Los Angeles Unified School District had expressed an interest in buying the property, but no firm offer materialized from either entity, officials said.

On Friday, state Sen. Richard Alarcon (D-Sylmar) said he was disappointed that the property was not purchased by the city for a new Valley police station.