Culver Plaza was a REO acquisition of a 42,986 square foot retail complex from national insurance company Sun America. The property is located at a highly visible intersection in downtown Culver City across from Sony Pictures’ studio. At acquisition, the property generated strong cash flow, but Levy Affiliated sought to improve performance in the near term through hands-on management. In addition, the Company saw long-term value in the prime location and excess parking for development.
At acquisition, Levy Affiliated closely reviewed operating expenses and targeted reductions which achieved 70%-plus net operating margins. In addition, revenue was increase by over $100,000 per year by bringing in-house the then outsourced parking garage operations. The Company successfully negotiated a lease buyout with the struggling anchor theatre tenant for $2.0 million, creating value in the project as a development opportunity. The property was sold for $20 million to a multi-family developer representing a 37% levered IRR.
Culver City, CA
Date of Acquisition: