LOS ANGELES—The Academy Tower in North Hollywood has traded hands for $61.5 million between an unnamed seller and Swift Realty Partners. The property has all of the elements of that investors are looking for, namely that it is proximate to transit. According to the seller's brokerage team, this property could have sold 10-times over and commanded tremendous demand in the market.
“Deals like The Academy Tower really hit the bull's-eye for investors due to a lot of the factors,” Sean Fulp, a broker at Newmark Grubb Knight Frank, tells GlobeSt.com. “We wish that we had 10 other listings like this one as we could easily have sold it 10 times over.” Fulp represented the seller in the transaction, along with Kevin Shannon, Brad Burton, and Rob Hannan.
The property's location in the North Hollywood Arts District played a tremendous role in the popularity of the investment opportunity. “The sheer presence of the Television Academy combined with the ground zero location in the NoHo Arts District, make The Academy Tower one of the most important properties for companies operating in television and media,” adds Fulp. “The property also happens to be two blocks from the NoHo Metro station, which has one of the highest ridership figures in all of Los Angeles. Metro also just announced that Greenland and Trammell Crow will be developing Metro's 15.6-acre site around the station, which will help elevate the NoHo Arts District to a major submarket in the L.A. region.”
In addition to the location, the property will also benefit from the tremendous growth in the tech and media sectors and the limited supply in the market. “The key point is that there are really only three class-A office buildings in the NoHo Arts District which makes it a very supply-constrained submarket,” says Fulp. “Other important factors are that there are a lot of walkable amenities, growing tech and media tenant demand, great public transportation nearby, and a lot of retail and residential development underway.” As a result of all of these characteristics, the brokerage team received 100 confidentiality agreements and conducted more than 30 property tours. In the end, they had 10 total offers.
The buyer plans to renovate and reposition the asset, and will perform a lease-up on the property. It is currently 80% occupied with 17 total tenants, the majority of which are in the media and television industries. “All of these elements will allow the buyer to quickly lease space, push rents higher and ultimately sell to a buyer that is willing to pay more due to the improving market conditions and the secure, long-term benefits that the NoHo market continues to offer in a world that seems to be more centered around tech and media,” says Fulp. The seller purchased the property in 2012 and decided to sell due to the strong fundamentals.
LOS ANGELES—The Academy Tower in North Hollywood has traded hands for $61.5 million between an unnamed seller and Swift Realty Partners. The property has all of the elements of that investors are looking for, namely that it is proximate to transit. According to the seller's brokerage team, this property could have sold 10-times over and commanded tremendous demand in the market.
“Deals like The Academy Tower really hit the bull's-eye for investors due to a lot of the factors,” Sean Fulp, a broker at Newmark Grubb Knight Frank, tells GlobeSt.com. “We wish that we had 10 other listings like this one as we could easily have sold it 10 times over.” Fulp represented the seller in the transaction, along with Kevin Shannon, Brad Burton, and Rob Hannan.
The property's location in the North Hollywood Arts District played a tremendous role in the popularity of the investment opportunity. “The sheer presence of the Television Academy combined with the ground zero location in the NoHo Arts District, make The Academy Tower one of the most important properties for companies operating in television and media,” adds Fulp. “The property also happens to be two blocks from the NoHo Metro station, which has one of the highest ridership figures in all of Los Angeles. Metro also just announced that Greenland and Trammell Crow will be developing Metro's 15.6-acre site around the station, which will help elevate the NoHo Arts District to a major submarket in the L.A. region.”
In addition to the location, the property will also benefit from the tremendous growth in the tech and media sectors and the limited supply in the market. “The key point is that there are really only three class-A office buildings in the NoHo Arts District which makes it a very supply-constrained submarket,” says Fulp. “Other important factors are that there are a lot of walkable amenities, growing tech and media tenant demand, great public transportation nearby, and a lot of retail and residential development underway.” As a result of all of these characteristics, the brokerage team received 100 confidentiality agreements and conducted more than 30 property tours. In the end, they had 10 total offers.
The buyer plans to renovate and reposition the asset, and will perform a lease-up on the property. It is currently 80% occupied with 17 total tenants, the majority of which are in the media and television industries. “All of these elements will allow the buyer to quickly lease space, push rents higher and ultimately sell to a buyer that is willing to pay more due to the improving market conditions and the secure, long-term benefits that the NoHo market continues to offer in a world that seems to be more centered around tech and media,” says Fulp. The seller purchased the property in 2012 and decided to sell due to the strong fundamentals.
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