Asset Class: Office

Geography: Los Angeles, Urban (Hollywood)

Size: 161,000 Square Feet

Business Plan:  The asset was purchased in 1995 with the intention to reposition the property.  The building was 50% vacant and was acquired with a creative capital structure that minimized equity contributions by setting up a  joint venture with the seller.  The parking lease was extended through a long term agreement.  What was once medical office space was completely renovated into entertainment and post-production space, which was leased by Soundelux.  The management team also capitalized on an opportunity to acquire the seller’s interest at a deeply discounted valuation after they declared bankruptcy.  After the rehabilitation was complete, the property was sold to Kennedy Wilson in 2006.

Acquisition Price: $4.0M

Rehabilitation Costs: $7.0M

Reversion Value: $19.2M