Wonderful. The New Burbank.
We tried to warn people about this horror back when the council foolishly allowed staff to, as part of “Burbank2035,” make it as easy as pie for Burbank’s older commercial areas to be converted into lucrative “mixed use” apartment zones for outside landlords and developers.
Cypress Equities has acquired a majority stake, or 1 million square feet, in the Burbank Town Center shopping plaza for $250 million and plans to pump an additional $55 million into renovations and upgrades, REAlert reported.
Located around the intersection of East Magnolia Boulevard and San Fernando Boulevard, the center stretches 37 acres — and eight blocks — in Downtown Burbank. The main portion of the mall is 99 percent leased. Anchor tenants include Macy’s, Sears and Burlington.
Cypress is also partnering with the now-minority owner, Crown Realty & Development, on the remaining portion of the plaza, a 206,000-square-foot storefront that IKEA will be vacating. The partners plan on redeveloping the property into a seven-story, mixed-use complex with 1,000 apartments and 50,000 square feet of retail space. The parcel is valued at $35 million. Cypress’ stake in this portion of the center is unknown.
A thousand apartments? [update: could that huge number possibly be correct?] That also means 1,000 new apartments up on the Hill. Not just “downtown.”
Imagine what would happen if someone wanted to put a thousand units anywhere else in Burbank…
Like the Rancho.
All hell would break loose. And this comes right on the tail of the Cusumano’s Twin Tower Rancheria Fantasia project six block away.
They’ll all be low income of course, which means that this huge an influx of new units will cause the market for our existing apartment stock to fall. So that’s all good.
This is how the “market” works, right? You know, supply and demand? The more the supply the less the cost to the consumer. It’s wonderful how magically this works, too. Free enterprise at its finest — like a finely tuned Swiss Watch.
You mean they’re not going to be low income? They’re going to be rather high in rent instead?
Which then will give the rest of our city’s landlords absolutely no incentive to keep their own rents down. Because that’s how it works.
This is why we need rent control in Burbank. Increasing the local housing supply will NOT keep rents affordable. The exact opposite will happen.