Los Angeles – Nov. 30, 2016 – CBRE Group, Inc. announced the sale of the Valencia Studios in Southern California, which currently serve as the home to the popular television drama NCIS, for $19.3 million.
The property, located at 26030 Avenue Hall & 28343 Avenue Croker in Valencia, is 120,878 square feet and consists of four buildings. It has been 100% leased for more than 20 years for various productions.
CBRE’s Craig Peters and Robert Valenziano represented the seller, Capital Foresight Limited Partnership and Valencia Studios NKG, and have transacted a large number of entertainment and production deals within the City of Santa Clarita. The private buying partnership was represented by Jeffrey Andrew of Cushman & Wakefield Pacific and Jeffrey Tietzer.
“The City of Santa Clarita is extremely film-friendly, and we’ve seen a surge of film activity over the past 5 years,” said Peters. “With the State of California bringing back film and television tax incentives, we expect this trend to continue. Our industrial vacancy rate is approximately 1.6% within the Valencia market, so available production facilities are extremely difficult to come by. Valencia Studios is located within the Thirty Mile Zone as well, which is very valuable for production companies.”
Prior to NCIS, shows such as Jag, the original A-Team, and Power Rangers have filmed at the Valencia Studios, which has six sound stages, production offices, and a backlot. The property was purchased by an investor who plans to continue to operate the asset as a studio.
“The ‘secret’ of Valencia as a desirable filming destination has been out for years now, as it’s a cost-alternative to the major studios further south and in Hollywood,” said Valenziano. “The last available significant sound stage in the Valencia market has just been leased, which means there is essentially zero availability in this product sub-type.”
He added “The real estate investment community has taken notice of the supply and demand imbalance within the studio and production space. As private and institutional capital competes for traditional ‘core’ Southern California real estate investments such as residential and office properties in our rapidly appreciating market, historically low CAP rates have caused investors to search for investment yield in other sub-types, and entertainment-related assets have been a very attractive investment alternative.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
