Newmark Capital Markets has announced the $37.75 million sale of 6725 Sunset Boulevard, a 73,835-square-foot office building located in Los Angeles’ burgeoning Hollywood submarket. The property includes a five-story multi-tenanted office building featuring creative tenant buildouts and an adjacent three level parking structure.
Newmark Capital Markets Co-Head of U.S. Capital Markets Markets Kevin Shannon, Executive Managing Directors Rob Hannan and Ken White, and Senior Managing Director Michael Moll represented the seller Crown Realty & Development, along with local market leasing expert, John Tronson, principal at Avison Young. Crown Realty & Development’s Chief Operating Officer Kreg Groat also represented the company in the transaction. The buyer, Vanbarton Group, a New York-based real estate investment and advisor firm, was self-represented.
The purchase of 6725 Sunset follows Vanbarton Group’s recent acquisition of the nearby 85,000 square-foot office 7083 Hollywood Boulevard, which closed in September 2017.
“Since 2005, this property has maintained an impressive average occupancy of 92 percent despite a significant amount of new office construction delivering in Hollywood. The property’s performance is a testament to its competitive positioning catering to entertainment-type tenants,” said Hannan.
Moll added, “With nearly 50 percent of the property expiring by the end of 2018 and in-place rents substantially below market, the investment offered a unique value-add profile within one of Los Angeles’ most sought-after office submarkets.”
The property was 100 percent leased by approximately 15 tenants primarily concentrated in the entertainment, tech and media industries at the time of sale. 6725 Sunset had undergone an extensive repositioning and features open floor plans, polished concrete floors, exposed brick walls and an outdoor courtyard for tenant gatherings, as well as unobstructed views of the Hollywood Hills.
“It was vital to find a buyer that was both capable and committed to the long-standing traditions of excellence associated with the property. Vanbarton certainly fits that requirement,” said Crown Realty & Development CEO Robert Flaxman.
About Newmark Capital Markets
Newmark Capital Markets, operated by Newmark Group, Inc., is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, our 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.
We provide access to a wide range of services, including asset sales, sale leasebacks, mortgage and entity-level financing, equity raising, underwriting and due diligence. The transactions we broker involve vacant land, new real estate developments and existing buildings. We specialize in arranging financing for most types of value-added commercial real estate, including land, condominium conversions, subdivisions, office, retail, industrial, multifamily, student housing, hotels, data center, healthcare, self-storage and special use. For further information, visit www.ngkf.com/capitalmarkets.
Newmark Group, Inc., which is listed on the NASDAQ Global Select Market under the symbol “NMRK”, is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”), a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol “BGCP”. BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol “BGCA”.
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