Why so low?

 

This is an incredibly low figure for that property, even taking into consideration the odd city/private sector “redevelopment” effort that went into its origin. And its legal entanglements and conditions.

From the San Fernando Valley Business Journal:

The former Ikea property and building in downtown Burbank sold this month for nearly $5.5 million, according to CoStar Group Inc.

Ccdp Nsfb LLC in Dallas paid about $2.44 a square foot for the 45 acres at 600 to 800 N. San Fernando Road. The purchase price separately included the two-story, 221,800 square foot retail building. The seller was Ikea Property Inc.

The Swedish retail giant moved in February from its longtime Burbank location built in1990 to a new, larger store a few miles south on San Fernando Road. There were plans to redevelop the old property into multi-family housing and a hotel.

A comparable sale was at 14665 Roscoe Blvd. in Panorama City, which sold for $18 million in January 2016 and included a vacant building that had once been a Montgomery Ward store built in 1965. The nearly nine acres of land sold for $47.60 per square foot.

There’s an obvious shell game going on here regarding a property transfer between interested parties. So of course, let’s now give them carte blanche approval on their dynamic new 21st-century 1,500 units and attached hotel.

Whoever they are.
 

 

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8 Comments

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8 responses to “Why so low?

  1. DixieFlyer

    Hold onto your undergarments!!!

    Info in the SFBusiness Journal is NOT accurate.

    One involves REAL PROPERTY and IMPROVEMENTS.
    (Montgomery Ward site)

    The other, in Burbank, involves a LEASEHOLD INTEREST only.

    Old Fritz Burns assembled the Property in what he named Panorama City many years ago.
    Sites for houses of worship were set aside.
    Libraries and ball diamonds were provided for.
    Old line retailers such as J W Robinson, Orbach’s, Broadway,etc were also provided for along with Montgomery Ward.

    One of the original International House of Pancakes (IHOP) was also provided for–long before the one on San Fernando Blvd.

    There was even a Hughes Market for old Papa Joe himself.

    Each Christmas Season (yes, it was still called Christmas) Mr. Burns even provided real live reindeer for the masses on the corner of Roscoe and Van Nuys from his ranch.

    More info will be provided, however hopefully the above is info apparently not made available to SFBusiness.

    Mr. Burns was an old friend of mine-before, during and after.

    • semichorus

      What are the terms of the IKEA deal? I knew there were limiting conditions, but 5 million seems awfully low.

      Is it a lease sale, or real property? And what is this oddly named holding company?

      I used to love Panorama City, btw. That area was once a paradise.

  2. Anonymous

    Did they get the street in the deal? Shows their development using it for a pedestrian walk way.

  3. amandabiersmelcher

    I noticed that this entity and Cypress Equities share similar addresses — 8333 and 8343 Douglas Avenue in Dallas. I suspect it is the same company trying to limit its liability by changing its corporate structure. But perhaps somebody else is more familiar with how shenanigans like this are arranged.

  4. chad

    DF, hold on to your hat. I knew the people at Fritz B. Burns Foundation very well. Great people. Hard working, dedicated, humble people. Rex Rawlinson is top shelf. Fritz Burns. Now there’s a developer/real estate person who truly gave back to the community.

    • DixieFlyer

      Mr. chad, you know what that group HAD accomplished in our Valley.

      After General Motors and Lockheed (along with their suppliers) left for other spaces our Valley took a big hit.

      However, there is no real estate comparison of Panorama City & Burbank.

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