A $20 million all-cash acquisition of a heavily vacant, partially redeveloped five-building,complex in Hollywood, Calif. out of receivership shows just how much the commercial real estate market has progressed.
For the past two years, most of the assets that have traded hands have been core assets with high occupancies and long-term leases. Thisbucks the trend.
The project, located on a 2.76-acre site, includes three small office buildings, two multifamily structures and three parking lots. The site was purchased in 2007 and in the process of being redeveloped, but as the recession set in many of the tenants pulled out, leaving it with vacancies and no further entitlements.
West Lost Angeles-based Champion Real Estate snapped up the asset from U.S. Bank and plans to entitle and build a $100-million transit-oriented mixed-use project on the site that will feature offices, retail, restaurants and apartments.