Investment firm buys Empire Center

The popular complex is sold for a reported $160 million to investment arm of an Iowa insurance company.MEDIA DISTRICT NORTH -- New owners have taken over the popular Empire Center shopping and restaurant complex.

Iowa-based Principal Life Insurance Co. purchased the shopping area this month for $160 million.

City Council members and other city officials received a letter from Principal last week to inform them of the purchase.

“That’s a good sign that they want to maintain a relationship,” Councilwoman Marsha Ramos said. “Otherwise business is business. It seems like an extremely reputable and successful corporation is taking over.”

The 105-acre Empire Center, built by Zelman Development Co. for $250 million, opened in late 2001. The center includes big names such as Costco, Target, Best Buy, Lowe’s and Staples, and food franchises such as Outback, Olive Garden, Wendy’s, Panda Express and Krispy Kreme in separate out buildings.

There are also two hotels in the center.

Attempts to reach Zelman President Ben Reiling and a representative from Principal Real Estate Investors Co. were not successful.

One of the issues to be discussed with the new owners is whether they are interested in establishing an internal circulator, a transportation system such as a trolley to get shoppers from one end of the center to the other, Assistant City Manager Mike Flad said.

“How people do it now is they drive or walk, which they complain about because the place is so big,” Flad said.

Allen C. Young, a senior vice president with CB Richard Ellis real estate who owns property in Burbank, said that new ownership would change little in the property as long as the management stays the same.

“It’s as good as a center as you’re going to find in the San Fernando Valley,” Young said.

“I know the tenants are doing very well with their business.

“If there was ever a turnover, there would be a line a mile long to get in there to be a co-tenant.”

As a shopper at the Target store, Young said he certainly knows that the center is too big to walk around.

“It’s a great idea,” Young said of the internal circulator.

“It’s been used in other places in Southern California. But usually it’s the tenants who end up paying for it and I don’t know if they would want to do that.”

* MARK MADLER covers City Hall and the courts.