Calabasas Courtyard is a three building, two and three story 117,000 square foot office campus strategically located at Parkway Calabasas and the 101 Freeway in Calabasas, California. Located in the heart of one of the most prestigious communities in Los Angeles West Valley Area, the project offers its tenants a park setting, ample parking, and quick access to first-class restaurant, business service, and retail amenities. In addition, tenants pay no Los Angeles City business taxes. The efficient 21,000 square foot floor-plates offer desirable, functional layout to both large and small office users. Kearny sold Calabasas Courtyard in October 2002 for $19 million to SCI, Inc. after implementing an extensive renovation and repositioning program.
Kearny recognized the unrealized potential of the project and purchased it in October 1999 for $15.7 million. Kearny immediately embarked on a $1 million rehabilitation program to enhance lobbies, corridors, restrooms and elevator cabs. Kearny also instituted significant operational changes including parking and a utility reimbursement program. For parking, Kearny created an allocation program that alleviated serious parking issues. With utilities, Kearny separately metered the majority of the tenant suites so that tenants pay direct for electricity on a net basis. With these changes, tenants now enjoy greatly reduced operating costs and can easily find parking adjacent to their building.
With a combination of both physical and operational enhancements implemented within a one-year period, Kearny repositioned the Calabasas Courtyard while significantly increasing revenues and net operating income.
While making the physical and operational changes, Kearny aggressively marketed the project renewing or leasing to new tenants over 80% of the project in a 12 month period.