Firm Acquires Warner Tower

An affiliate of British real estate company Grosvenor has acquired the 12-story Warner Corporate Center office tower at Victory Boulevard and Canoga Avenue in the Warner Center commercial district in the San Fernando Valley.

Grosvenor’s San Francisco-based Vice President Alan Chamorro wouldn’t disclose the price his firm paid an affiliate of Japan-based Nomura Real Estate for the 75% leased, 253,000-square-foot building. But real estate observers following the active office investment market in Warner Center estimated the 14-year-old building sold for $41 million to $43 million.

While Warner Center is considered a strong office market with supply and demand for space in relative balance, properties are still selling for substantially less than they did at the peak of the previous economic cycle around 1990. Nomura reportedly paid developer Highridge Partners about $70 million for the Warner Corporate Center back then.

Grosvenor sees an opportunity to add value to the building by leasing vacant space, Chamorro said. The property boasts tenants such as McDonald’s Corp., Vertel Corp., Syncor International Corp. and Zurich American Insurance Co., but lost “anchor” State Compensation Insurance Fund to a new Glendale high-rise a few years ago.

Eastdil Realty’s Kevin Dretzka, Kevin Crummy and Anthony Malk represented Nomura in the sale negotiations. Grosvenor has engaged Insignia/ESG to manage the property and Cushman & Wakefield to lease available space, which includes two contiguous full floors totaling 43,000 square feet.

Grosvenor, which owns or manages $7 billion worth of property on five continents, also owns 48-story Citibank Center in Los Angeles and the 12-story Two North Lake tower in Pasadena. The private company is part of the holdings of the Duke of Westminster and other Grosvenor family members.