5000 Sunset was a REO acquisition of an eight story medical office building owned by American International Bank. The property is a trophy asset along highly desired Sunset Boulevard at the border of Los Angeles and Hollywood. At the time of acquisition, the property had some income from anchor tenant with Children’s Hospital, but was 50% vacant and poorly managed.
Upon acquisition, Levy Affiliated focused on expense reduction and leasing. The Company worked to form a strong relationship with the real estate department at Children’s Hospital and was able to convince the tenant to consolidate space from its nearby facilities to this building. This enabled Levy Affiliated to proactively market to other major healthcare companies in the Los Angeles area and leased the remaining space to Kaiser Permanente. Within two years from acquisition, the building was 100% leased and has remained so. At the same time, Levy Affiliated was able to substantially reduce operating expenses, generating average net operating margins of 60%. The property was sold in an inter-partner transaction.
Los Angeles, CA
Date of Acquisition: