Bisnow Exclusive: Yahoo Extends in Burbank
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Bisnow has learned the Overture Services unit of tech giant Yahoo has signed a five-year extension for more than 100k SF at Media Studios North in Burbank.
Our sources say the deal likely got done in the low $3/SF range, pegging the value at somewhere in the neighborhood of $18M. At its peak in Burbank, the unit occupied all of 3333 W Empire and 3355 W Empire, which are owned by Worthe Real Estate Group and Shorenstein. Several floors had been sublet to Disney, StereoD (deluxe subsidiary) and eSolar, an Idealab company, Colliers EVP Nico Vilgiate, who was not involved in the deal, tells us. The renewal, which takes place more than a year before the previous deal was set to expire, has the firm leasing floors one and two and part of three at the 3333 W Empire building. Here's Nico with his wife, Ashley, and daughter Mia in Park City, UT.
Nico tells us Yahoo has been looking to downsize its office footprint there for some time, and moved Overture to the buildings shortly after it acquired the unit for $1.83B in 2003. Nico's pretty tight in the Tri-Cities market, having repped the landlords in the three largest leases last year: Community Bank for 84k SF at 465 N Halstead in Pasadena on behalf of Edgewood and Divco West; Pilgrim Productions for 65k SF at 12020 Chandler in North Hollywood on behalf of PCCP; and Tetra Tech for 60k SF at Pasadena Corporate Park on behalf of Columbia Property Trust.
After flirting with a consolidation to Downtown, which Nico calls a leverage play, the Westside Yahoo folks prevailed and inked a deal for 130k SF with Tishman in Playa Vista at The Collective (above), following Google's $120M commitment announced only a few months ago. But the Burbank deal is good news for the market, as it keeps the big-time tenant and retains signage atop the building, which looks good for those flying in and out of the nearby Burbank Bob Hope Airport.