Trammell wins auction for troubled Sun Valley parcel.

Trammell Crow Co. has closed on a 33-acre industrial parcel in Sun Valley after emerging as the winning bidder for the land in a bankruptcy sale.

Trammell Crow, which was also the stalking horse selected for the auction, was one of four bidders that made offers on the property.

The winning bid, $18,750,000, was a sum that fell toward the center of the bidding, which ranged from $18.5 million to $19.1 million.

Property sold at auction is evaluated on the bid amount as well as other conditions potential buyers set.

The sale marks the first time the property, which has a long, troubled history, has been in the hands of a professional real estate development company and offers hope, perhaps for the first time, that the site will be transformed into a viable, commercial development.

But developing the site won't be easy, even for pros like Trammell. The property, at Branford St. and San Fernando Road, comes with a host of environmental problems. Others have noted that the original tract map does not sufficiently map out the portions of the brownfield site which may not be develop-able, and the configuration of the property presents considerable design challenges.

Trammell Crow officials say they are aware of the potential problems, but the parcel also presents significant opportunities.

"It's a great piece of real estate and a great location in a very supply-constrained market," said Brad Cox, Trammell Crow managing director. "Anytime you're looking for good real estate, you have to be creative to find solutions, and we're hoping to make it a big win for us and the city of Los Angeles."

Trammell Crow will spend some time working with city officials and with the site in order to come up with a design plan for the development, Cox said. The timeframe for completing the draft is still undetermined.

"We're just trying to get our hands around it," Cox said.

The other bidders included LNR Property Corp., Revita Development LLC and an Overton Moore Properties affiliate.

Trammell Crow, which also developed the West Hills Corporate Center, recently completed a $450 million redevelopment in Century City, including 725,000 square feet of office space, 30,000 square feet of restaurants, a 10,000 square foot cultural center and a 4-acre park. About 70 percent of the office complex, 2000 Avenue of the Stars at Century Park, was pre-leased, and the company is currently renovating the adjoining Century Plaza Towers hotel.

Plans to redevelop the Sun Valley site have been stymied since the beginning of the decade, either as a result of poor management or difficulty working through the environmental issues connected with the property.

But the earlier developers had little or no track record, and this is the first time that a professional development team will tackle the project.

If it comes to pass, an industrial development in the area could add a significant economic engine to the Northeast Valley, which has long sought opportunities to bring jobs to the area.

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