Harbor Associates, LLC and F&F Capital Group have recently acquired a Class A creative office building on Los Angeles’ Westside for $44.713 million in a joint venture. According to the Los Angeles Business Journal, the property was previously sold for nearly $93 million five years ago.
Harbor principal Joon Choi stated that after delaying their decision for several years, they are now witnessing distress in the market. Despite current challenges such as remote work trends impacting commercial offices, there are still opportunities to acquire undervalued properties with potential for strong returns post-COVID era at discounted prices.
Originally built in 1987 and extensively renovated over the past decade with over $11 million invested into tenant spaces and amenities including north and west facing balconies, redesigned lobby and common areas, a 70-seat screening room on ground floor level along with new elevator landings. At time of closing it was 80% occupied.
The seller was represented by Kevin Shannon & Rob Hannan of Newmark during this transaction.
