Latest deals cast spotlight on San Fernando Valley scene.

AFTER a spate of high-profile deals downtown, investment activity seems to be shifting to the San Fernando Valley.

TA Associates, a Boston-based pension fund advisor, has agreed to buy the Encino Executive Center at 16027 W. Ventura Blvd. for $21.8 million, according to Grubb & Ellis Co. Senior Vice President Kevin Shannon.

Shannon represented both TA and the seller, Bentwood-based investment firm Commercial Ventures Inc., which bought the 114,000-square-foot building for $18.3 million in December 2002.

The building is 73 percent leased, with major tenants Life Alert Emergency Response Inc. and Bank of the West.

"The leasing market is tightening up and (TA Associates) is comfortable they will lease it up pretty quickly," he said.

"This a deal where occupancy wasn't increased but value increased because of improved market conditions," he said. "Strong rental rate growth and increased leasing velocity has led to better pricing on a building that has relatively the same occupancy (since its last sale)."

The transaction comes on the heels of Credit Suisse First Boston's listing of its LNR Warner Center in Woodland Hills. The offering, being represented by Secured Capital Corp., comes shortly after CSFB's purchase of the property last year for $111 million.

The buildings, encompassing 449,000 square feet, are located at 21271 Burbank Blvd., 21281 Burbank Blvd. and 5820 Canoga Ave. Several brokers believe the complex, which has entitlements for another 1 million square feet, could trade for as much as $150 million.

Secured Capital is also marketing Apollo Real Estate Advisors' Warner Center building housing the headquarters of WellPoint Health Networks. Another Warner Center property, BentleyForbes' 21st Century Plaza, has been listed for sale with CB Richard Ellis Inc.

Studio Deal

After buying Culver Studios for $125 million just six months ago, Pacifica Ventures is already looking to expand the storied film lot.

Culver City's redevelopment agency has entered into negotiations with the company that would allow it to develop a $25 million, 115,000-square-foot office and retail building on the site of a city-owned parking lot across the street from the studios.

Pacifica Ventures, a group of entertainment and real estate investors that bought Culver Studios from Sony in April, have partnered with San Diego-based Rush Properties Inc. to develop the office building.

The project, as it's currently envisioned, would close off Ince Boulevard between Washington and Culver boulevards, and include 75 underground parking spots.

Hal Katersky, the chairman and chief executive of Culver Studios, said the building would provide badly needed office space and be connected to the sound stages by a pedestrian bridge over Washington Boulevard.

"One of the problems with the studio is that we don't have enough office space," he said. "We have had to turn down a number of production companies because we don't have enough space."

Culver City Mayor Steven Rose said it hasn't been determined whether Pacifica and Rush would buy the land or enter into a long-term ground lease.

Rose said Pacifica and Rush already had pre-leasing commitments for up to 50 percent of the building, and several letters of intent from retailers who want to open shops on the ground floor.

"There's no public funding required." Rose said. "Their ability to fund the project and their percentage of committed lease space played into our decision to go with them as the developers."

The project was approved 4-1, with Councilman Gary Silbiger casting the lone dissenting vote. Silbiger said he would like to see more public comment on the project, which he believes should contain mixed-income housing.

"Elected officials shouldn't have the right to say what should be there without the community buying in," he said. "'I like the concept of having community meetings and outreach, I think that's how democracy works best."

Ocean Views

Embarcadero Capital Partners LLC has purchased the roughly 100.000-square-foot office building at 17381 Sunset Blvd., at the intersection with Pacific Coast Highway, for about $25 million.

The 15-year-old building, anchored by Spectrum sports club, is about 90 percent occupied. The seller, Pacifica Capital Group Inc., picked up the building in April 1998 for $21 million, according to Andy Carpiac, a partner at the firm.

"We were able to lease the retail component of the building to Spectrum on a long-term lease, which added the majority of the value we created," he said. "(That) added to the rent rolls and allowed us to get a fair price for the building in today's market."

Pacifica first took the building to market last year, but a potential deal fell through. "So this time around we did it as an off-market deal," Carpiac said. Calls to Embarcadero weren't returned.

Bob Safai, a principal at Madison Partners, represented both the buyer and seller on the transaction.

More Valley Action

Nearly all of the first phase of the Burbank Airport Commerce Center, developed by Volt Development Co., has been sold or is in escrow barely a month after it was completed and only a year after the developers closed escrow on the property.

The 204,000-square-tbot Phase I includes 10 buildings, five of which are on individual lots and five industrial condominiums on a common lot that range in size from 9,000 to 46,000 square feet.

Among the companies that have closed escrow: Ace Industrial Supply: Happy Jump Inc., makers of kid's play products: Acme Archives, a media company: and H-Motors Online, an auto parts and accessories firm.

San Fernando Valley Business Journal reporter Shelly Garcia contributed to this column. Staff reporter Andy Fixmer can be reached by phone at [phone], ext. 263, or by e-mail at [e-mail].