DEVELOPER AGREES TO TERMS WARNER CENTER PROPERTIES SOLD.

Byline: Brent Hopkins Staff Writer

WOODLAND HILLS - A Santa Monica developer has agreed to terms in the purchase of the collection of low-rise and high-rise buildings known as Warner Center Properties, those familiar with the deal said.

Douglas Emmett Realty Advisors won the bidding war for the six towers in January, with an asking price in the mid-$300 million range. The company signed a letter of understanding with AH Warner Center Properties LLC, agreeing to take over possibly as soon as August.

``A purchase and sale agreement has been signed by all parties,'' said Bill Inglis, a senior vice president for the towers' leasing agent, Warner Center Properties. ``They have a certain amount of time to look at it, then they have to put up the money or walk away.''

Things should be finalized by October, Inglis said, and discussions are proceeding for the sale of the 15 smaller buildings in the complex. Century City-based Kearny Real Estate Co. is in the running, with a price range above $60 million.

``There's no agreement for the low rise as far as I know,'' he said. ``They are talking to Kearny, but nothing's been finalized.''

Representatives of Douglas Emmett and Kearny did not return calls seeking comment, and Martha Thurber of AEW Capital Management, the center's representative in the transaction, declined to discuss the sale.

``We won't have anything to say until the deal's complete,'' she said.

Voit Cos., the site's original developer in 1974, put in bids on the low-rise buildings, but dropped out in January, citing price concerns.

``We had an offer on it, but there was a lot of maintenance and the rent was way too high,'' said Brian Malliet, Voit's vice president of development and acquisition. ``We told them if they wanted to sell in the near $60 million (range), we'd buy, but they elected to do business with someone else.''

Vacancy climbed to 20 percent for the property when HealthNet vacated its tower for a new office across Canoga Avenue, Inglis said, but Warner Center Properties is on the hunt for a new tenant. In comparison, the overall vacancy rate for the West Valley stood at 16 percent for the first quarter. Though the vacancy could hurt the overall sales price, economic guru Jack Kyser said the prices were still reasonable for both parties.

``This isn't a fire sale, which is a good thing,'' said Kyser, chief economist for the Los Angeles County Economic Development Corp. ``They're getting a strategic property that's high quality.''

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These buildings in Warner Center are involved in the deal.