JV Kicks Off 1.3 MSF Los Angeles Project
Overton Moore and Invesco team up in Burbank for the San Fernando Valley's largest infill development in two decades.
Responding to the increasingly loud cry for Class A, creative industrial and office space in metropolitan Los Angeles, Overton Moore Properties has launched Avion Burbank in Burbank, Calif. The approximately 1.3 million-square-foot, mixed-use business park marks the largest infill development to get underway in the San Fernando Valley over the last two decades.
OMP and joint venture partner Invesco Real Estate are erecting Avion Burbank on a 60-acre site that OMP acquired from Burbank-Glendale-Pasadena Airport Authority for $72.5 million in early 2016. Carrying the address of 3001 N. Hollywood Way, the 18-building project will sprout up adjacent to Hollywood Burbank Airport, also commonly known as Bob Hope Airport, flanked by industrial and storage properties and surrounded by transit options, including a Metrolink stop, bus lines and freeways. It’s a project envisioned to appeal to tenants over the long term by, as Timur Tecimer, CEO of Overton Moore Properties, told Commercial Property Executive, “providing customers with an amenity-rich environment with sustainability embedded in the design, while providing multiple transit possibilities for employees to get to the site.”
Upon completion, Avion Burbank will feature six two-story creative industrial facilities totaling approximately 1 million square feet, nine two-story structures encompassing 142,300 square feet of creative office space, two single-story retail buildings totaling roughly 15,000 square feet and a six-story, 100,000-square-foot, 150-key boutique hotel. The development will be built to qualify for LEED Certified Silver Core and Shell and will boast such green features as bike share stations and more than 100 Level 2 electric vehicle charging stations.
Demand by the numbers
Metropolitan Los Angeles continues to lead the country as the tightest industrial market, having recorded 19 consecutive quarters of vacancy below 2 percent, per a second-quarter report by CBRE, which is overseeing leasing at Avion Burbank. The firm points to the entertainment and content firms along with their supply chains as the demand drivers for premier industrial space in the area. In San Fernando Valley, the overall vacancy rate was just 1.5 percent at midyear. As for office space, Burbank is among a handful of districts where high-quality, large-block availabilities are scarce, per the report. Avion Burbank is on schedule to hit the market in 2021.