Tenants Take 53,000 SF With Kilroy, Alhambra

[IMGCAP(1)]LOS ANGELES-Obagi Medical has leased 30,884 sf of office space at Kilroy Airport Center in Long Beach, and three tenants have taken 22,000 sf at the Alhambra Office Community campus in Alhambra. The Obagi Medical space, at 3760 Kilroy Airport Way in one of seven buildings at the Kilroy project, will serve as a new corporate headquarters for the developer of skin health products for the dermatology, plastic surgery and related markets.

Obagi plans to relocate from its current location at 310 Golden Shore in Long Beach in October, according to brokers from Jones Lang LaSalle, recently merged with the Staubach Co., who represented Obagi. The team representing Obagi included executive vice presidents John McRoskey and Tom Turley along with Associates Jason Fine and Jordan Kissel. Kilroy Realty was represented by Robert Gary of Cushman & Wakefield.

Obagi Medical will occupy the entire fifth and a portion of the sixth floor at 3760 Kilroy Airport Way, which is a six-story, 165,000-sf building at the 950,000-sf Kilroy Airport Center. The new space will provide room to accommodate future growth at Obagi, McRoskey notes.

Terms of the Obagi lease were not disclosed. According to the latest Kilroy annual report, filed in February, the Los Angeles-based REIT was leasing space at 3760 Kilroy Airport Way at an average base rent of $24.92 per sf per year.

[IMGCAP(2)]At the one-million-sf Alhambra campus at 1000 S. Fremont Ave. in Alhambra, the three tenants who have signed new leases are Pinnacle College, Total Education Solutions and the Ratkovich Co. The leases, with terms ranging from five to 10 years, are valued together at approximately $6 million.

Pinnacle College has extended its existing lease of 7,115 sf by five years and has leased an additional 5,005 sf for seven years. A tenant since 2005, Pinnacle College is a recording engineering school that trains students for the audio recording industry. Total Education Solutions, a national provider of special education solutions for public and private education organizations, has signed a 10-year lease for a new 3,162-sf space to conduct occupational therapy.

The Ratkovich Co., which oversees the operations of the 45-acre office campus at the Alhambra, has signed a five-year lease for 6,898 sf, according to Victoria Deise Wilson, senior development manager of the Ratkovich Co. The Alhambra campus, on Fremont Avenue immediately north of Mission Road in Alhambra, includes a 50,000-sf LA Fitness Center that is under development and scheduled to open this September.

The Alhambra also has plans for adding condominiums and townhomes on the northeast corner of the site. The Ratkovich Co. previously built a seven-acre neighborhood shopping center, the Shops at The Alhambra, across Fremont Avenue from the main Alhambra campus.