Health insurer Anthem Blue Cross is on track to create one of the largest open parcels in the San Fernando Valley of Los Angeles by planning to leave its longtime workplace tower and cut its area by majority at a neighboring complex.
The relocation will leave vacant its existing 14-story workplace tower in Forest Hills, CA, that rests on six acres surrounding to a 26-acre surface area parking lot that Anthem owns and had actually noted for sale in 2015. The combined 32 acres of cleared space, surrounding grounds and a tower develops a relatively unusual opportunity for advancement in the nation’s second-largest city, inning accordance with CoStar data.
A low-density property with large parking like Anthem’s in Forest Hills is prime for advancement, especially given allowances detailed in local advancement strategies, stated Stephen Basham, senior market expert covering the Southern California area for CoStar Market Analytics.
“It is among the few locations in Los Angeles with land and the possibility for large-scale advancement and the political determination welcoming increased density,” Basham said. “That’s exactly what makes it one of the most intriguing spots in L.A. over the next years.”
The move comes amid a rise in need for the Warner Center in Woodland Hills, a wealthy suburban neighborhood at the foothills of the Santa Monica Mountains in the west San Fernando Valley that has single-family houses, high-performing schools, a Westfield shopping mall and a growing office market.
Anthem reached a deal for more than 169,000 square feet at the brand-new site, called Campus at Warner Center, made up of two six-story, Class An office complex at 21215 – 21255 Burbank Blvd., with the joint venture in between property developer and owner Lincoln Property Co. and investment manager Angelo, Gordon & & Co.
Anthem is downsizing from 448,070 square feet at 21555 Oxnard St., where it has inhabited the entire building because 1977, according to CoStar research. Its lease there, with proprietor T & & A Warner Center Investors LLC in Beverly Hills, expires next year. T & & A Warner Center has not noted the structure for sale.
“In late 2019, we will be moving our Woodland Hills office to a more recent, more contemporary structure located a couple of blocks away,” an Anthem spokeswoman said in an e-mail to CoStar News.
Anthem prepares to backfill area at Campus at Warner Center that is being vacated by Turbo Tax developer Intuit Inc. The software application maker is vacating 170,000 square feet in that structure and decreasing its space to about 53,000 square feet in Los Angeles property financial investment trust Douglas Emmett Inc.’s high-rise Warner Center Towers, at 21650 Oxnard St. Intuit stated it is shedding unused area and is not laying off any workers.
“Clearly losing Intuit was not a positive,” said Kent Handleman, senior vice president at Lincoln Residential or commercial property who represented his company, which is a co-owner of the structure Anthem is moving into, in the settlements. “So this deal [with Anthem] is a home run. It’s very significant to this project. It really makes the financial investment sort of hum here, having such excellent name and terrific credit tenant.”
Anthem’s moving shows a substantial decrease in area for the health insurance provider. The spokesperson didn’t talk about why the firm is minimizing its square video by more than half in this market.
The health insurer’s 26-acre parking area nearby to its long time Oxnard Street tower was listed for sale with real estate brokerage Savills Studley last year. The business didn’t talk about how the home is being marketed and whether Anthem vacating the adjacent office complex could impact any sale of the parking area.
There has been a flurry of advancement intend on land in Woodland Hills’ Warner Center area because the application of the Warner Center 2035 Strategy, which permits 30 million square feet of industrial advancement and 20,000 new residences.
Shopping center of America developer Triple Five Group is under agreement to buy the 47-acre previous Rocketdyne site in Warner Center for $150 million and prepares to build a big mixed-use advancement there.
On the other hand, shopping center designer Westfield Group was authorized to establish houses, hotels and an entertainment location as part of its $1.5 million Promenade expansion.
For the Record: Corey Davidson, Liron Nelik and David DiPietro of Savills Studley represented Anthem Blue Cross in the deal. Kent Handleman led the negotiations for Lincoln Residential or commercial property Company.