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HOLLYWOOD-Crown Realty & Development has acquired the 6725 Sunset Blvd. office building from TNCA LLC for $19.5 million. The 73,000-sf office project is 100% occupied and in addition to office tenants like Hyperion Pictures and Real Networks the five-story building is home to the popular jazz venue Catalina Bar & Grill. Brandt McCullough, VP and director of acquisitions for Crown, tells GlobeSt.com that a number of factors attracted the company to the building, including its full occupancy, an improving office market in Hollywood and a recent repositioning by the seller. “The entire rent roll has just been put in place, so we have no near-term lease rollover exposure, and the asset itself has been completely repositioned and targeted toward the entertainment industry,” McCullough says. He adds that Crown sees an “increasing vibrancy and tightening” in the Hollywood market, which has been on the upswing in recent years as office, residential and retail projects have revived the area. McCullough tells GlobeSt.com that the 6725 building will provide Crown with “a very attractive yield on freshly minted leases” as well as an asset that was “completely repositioned before our purchase.” Robert Flaxman, president of Crown, cites the high barriers to entry for competing new development in Hollywood as well as a location that provides tenants with views of the Hollywood Hills, Downtown Los Angeles, Century City and the west. The 6725 sale was brokered by John P. Tronson and Christopher V. Bonbright of Ramsey-Shilling Commercial Real Estate Services on behalf of both Crown Realty and the seller. Crown Realty was also represented internally McCullough, who notes that with the addition of 6725 to its portfolio, Crown now owns properties in the Westside, Tri-Cities, Beverly Hills and Hollywood submarkets. Crown, which is based in Beverly Hills and Irvine, also is looking at possible acquisitions in other western markets including Phoenix, Scottsdale and Las Vegas, McCullough notes. The company’s $600-million portfolio includes more than three million sf of commercial real estate projects in West Los Angeles, Burbank, Glendale, Orange County and Phoenix.

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