ZRP PROJECT WORK BEGINS.

Byline: GREGORY J. WILCOX Real Estate

The economy may be slowing, but it didn't keep Burbank's commercial and retail real estate market from getting off to a fast start.

When space becomes available, it is quickly gobbled up, and work is under way on the city's biggest mixed-use concept yet, which combines commercial and retail uses.

Los Angeles-based developer ZRP Burbank LLC, an affiliate of Zelman Retail Partners, has started construction on a $160 million complex called Burbank Empire Center on the former Lockheed Corp. site at Empire Avenue and Victory Boulevard.

The 1.4-million-square-foot project - which includes two hotels, restaurants, offices and retail stores - is expected to open in the fall.

``We worked long and hard to create the best plan to develop this urban infill site as a local asset and are confident that we have secured the right mix of retailers to bring long-term revitalization and benefit to the community,'' said Ben Reiling, Zelman's president.

Colliers Seeley International Inc. represented Zelman and the previous owner of the 103-acre parcel in the transaction.

The company is responsible for marketing 900,000 square feet of retail space and, so far, results have been good.

Colliers Seeley has already gotten commitments from The Great Indoors, Costco, Lowe's Home Improvement, Target, Marshalls, Michael's, Best Buy, Staples, Sportmart, Linens-n-Things, Roadhouse Grill and Krispy Kreme.

The hotels are Extended Stay America and Embassy Suites.

``There really was a lot of pent-up demand that was unsatisfied and there was nowhere else something this size could be built in this market,'' said Bill Bauman, senior vice president of Colliers Seeley's retail group.

Most of the retail space has already been leased, he said.

The project also includes about 400,000 square feet of office space.

Burbank has been one of the hottest markets in the Los Angeles Basin, a situation that probably won't change anytime soon.

For example, last week Cushman & Wakefield announced that Camarillo-based Technicolor has signed on for 33,698 square feet of space in the 20-acre Media Studios North Campus at 2233 Ontario Ave.

The film imaging company is taking an entire third floor of one of the office park's buildings.

Terms are 10 years for $11 million.

Cushman & Wakefield's Robert D. Erickson, who represented Technicolor, notes that the vacancy rate for office space in Burbank is about 3 percent, which is very tight.

``There is a lot hanging over the economy right now. I hate to venture a guess what's going to happen with all that (new) development but Burbank is one of the strongest markets in L.A,'' he said.

And it's usually absorbed what's been built in the past.

Broker Buzz:

--Entertainment giant Metro-Goldwyn-Mayer Studios Inc., in one of the largest office leases in Los Angeles history, is taking 17 floors of the new 700,000-square-foot, $250 million Century City tower.

Terms were not disclosed.

Attorney Peter Weil, a partner at Century City-based Christensen, Miller, Fink, Jacobs, Glaser, Weil & Shapiro LLP, led the legal team that negotiated the lease.

The deal allows Chicago-based developer JMB Realty to start work on the project, which should be completed in 2003.

--Kaufman and Broad Home Corp., the nation's biggest residential builder, starts the year with a new name. The company is now known as KB Home.

``KB Home is what many of our customers have always called us, so we're changing our name to reflect their input,'' said company chairman and chief executive officer Bruce Karatz.

The Fortune 500 company built 22,847 homes last year.

--Medtronics, a maker of 3D and holographic images for a variety of products, has leased a 7,000-square-foot facility at the Grande Vista Park in Thousand Oaks.

Terms are five years for $440,000. The company will use the facility for product sales and distribution.

Tony Principe and Jim Darin of Westcord Commercial Real Estate Services represented the property owner, Burke Real Estate Group.