Enters into Escrow on Los Angeles Portion of Property Not Needed for Terminal; Sale Will Provide $16.9 Million to Bolster Airport Finances
BURBANK, Calif., October 1, 2001 — The Burbank-Glendale-Pasadena Airport Authority voted unanimously today to enter into a 120-day escrow for the sale of 22 acres of the former Lockheed Plant B-6 property within Los Angeles at a price of $16.95 million to Cabot Industrial Properties L.P. of Boston, MA. The buyer intends to develop the site for light industrial uses not related to airport activities.
The land is part of 130 acres acquired from Lockheed Martin Corp. in 1999 in conjunction with a proposed replacement passenger terminal project, but the Authority has determined that this parcel is surplus to any potential terminal requirements.
“We have carefully reviewed the status of this property, and it is clear that any terminal we might want to build – even in light of additional requirements that might arise because of security – will fit well within the boundaries of the remaining B-6 property,” said Executive Director Dios Marrero.
The sale has taken on added importance for the Authority’s finances since normal Authority revenue has been significantly impacted in the aftermath of the September 11 terrorist attacks. “Obtaining $16.9 million at this time will provide us with much needed liquidity as we try to assess the long-term picture,” Marrero added.
The sale was prompted by an agreement between the Authority and the City of Burbank requiring that 80 acres of the former Lockheed property be sold after the two parties failed to reach a final accord on the terminal program by May 2000. The Woodland Hills office of Cushman and Wakefield of California, Inc. began listing the property in February of this year.
Approximately 58 acres of B-6 land remain unsold, and the Authority last week asked Burbank to relax the sale requirement, while suspending all activity relating to a terminal project in the wake of the terrorist attacks.
Under terms of today’s purchase and sale agreement, the buyer has 90 days to perform due diligence, followed by another 30 days to close the transaction. The property will be sold with an easement permitting aircraft overflights, and any structures built must conform to FAA height restrictions for buildings near runways.