Owners seek new uses for Sherman Oaks Theater site.

THE latest casualty of the movie theater shakeout means that a new large tenant will be moving into the Sherman Oaks area.

AMC Theatres has closed a two-screen theater at Milbank Street and Van Nuys Boulevard, and the new owners of the property are seeking alternate uses for the 90,000-square-foot parcel.

"We've got a lot of interest from a range of tenants, but we have not selected any tenants yet," said Matthew May, president of May Realty Advisors, which is marketing the property on behalf of the private investor owners.

The parcel is located at the end of a shopping center that also houses Gelson's and Solley's Dell, and has been undergoing a bit of revitalization lately.

Several new, smaller tenants have moved in, and Solley's, which is owned by Jerry's Famous Deli Inc., has had a facelift.

The theater had become something of an oddity in an industry that is increasingly moving to huge multiplexes with stadium seating and sound and picture technology with all the bells and whistles.

It was part of a complex that included another five screens with a separate entrance off Milbank Street. That portion was sold to Pacific Theatres Corp. this summer, leaving the two-screen building as a standalone AMC property.

AMC officials could not be reached for comment at presstime, but the company has said previously that it planned to close 300 screens across the country at a rate of 70 to 80 per year through 2004.

AMC's announcement made note of its intent to close what it called older style theaters. This Sherman Oaks complex was acquired as part of its purchase of GC Companies, former operators of General Cinema, in a deal that closed last year.

Interestingly, Pacific Theatres moved to acquire what it is calling the Sherman Oaks 5-Plex, also an older venue, in spite of the fact that the company in recent years renovated its Sherman Oaks Galleria theaters, just a short distance away, and now operates a modern, 16-screen complex at that center.

But like others with different types of theater properties in close proximity, Pacific Theatres hopes each complex will attract a distinctive market.

"By acquiring the Sherman Oaks theater, we can present a full range of mainstream and specialized films at the Galleria 16 location while providing specialized programming for families and senior citizens at the Sherman Oaks 5," company officials said at the time of the acquisition.

As for the tenant search on the site that's now available, neighbors have already weighed in with some of their concerns, and May said that the wishes of the community along with the current retail demand, would have to be assessed before any deal is made.

Santa Clarita Status

Here's an interesting factoid.

The 20,885 homes expected to be built in the newly approved Newhall Ranch community in Santa Clarita, would meet less than one year of the housing need in Los Angeles County today, and that's if the inventory were all to be built in one year, which it isn't.

So said Dr. Mark Schniepp, director of the California Economic Forecast and senior economist in the state controller's office.

Schniepp offered the insight at Chicago Title's 2004 Santa Clarita Valley Real Estate & Economic Conference Nov. 6 in Valencia.

By the end of this year, more than 2,800 new homes will have been sold in the Santa Clarita Valley, but the demand is so strong, that prices continue to climb, now surpassing the $500,000 mark on average, Schniepp said.

"Most of the new approved communities receiving permits are in the unincorporated areas of the Valley, including Canyon Country, Castaic and Stevenson Ranch," Schniepp said.

Oh, and the Newhall Ranch home construction? Those homes will be built out over a 15 or 20 year period.

R&D Action

A private family trust has acquired the 19,000-square-foot Anchor Court Business Center in Newbury Park for $2 million.

The building, at 2099 Anchor Court, is fully occupied by Centrovision Inc. and includes 1.5 acres of land.

Bob Hoyer and Jim Hobson of Delphi Business Properties represented the buyer, Mernick Family Trust.

Nick Gregg and Ken Ashen of CB Richard Ellis represented the seller, Anchor Associates.

Arden Takes Three

Arden Realty Inc. has signed three leases that bring its property at 303 Glenoaks Blvd. in Burbank to near-full occupancy.

Arden inked deals for about 17,000 square feet each with Universal Music & Video Distribution Inc., Front Porch, a senior housing developer, and Louie, Almeida & Stettler, a law firm.

The Universal and Louie, Almeida transactions, each for five years, are each valued at $2 million. Front Porch signed for 10 years in a deal valued at $3.8 million.

Kevin Fenenbock, Arden's porfolio leasing manager, and Doug Marlow, Randy Brown and Gil Canton, brokers with CB Richard Ellis, represented the landlord in the deals.

Front Porch was represented by Patrick Church and Nicole Wilson at CB.

And Dan Powers, with Sperry Van Ness, represented Louie, Almeida & Stettler.

Agoura Deal

Kennedy-Western University has made it official.

As previously reported, the school has inked a deal to lease 35,000 square feet of office space at Agoura Hills Center in a deal valued at $6.5 million. The deal fills more than half the building.

Keith Green, David Corsello and Michael Foxworthy at GVA Daum represented Katell in the transaction. Carlo Brignardello of Cresa Partners represented the tenant, a school that specializes in programs for mid-career adults.

Senior Reporter Shelly Garcia can be reached at [phone] or by e-mail at [e-mail].