Mark borman
2020 E 7 th Place & 2045 E. Violet Street, Los Angeles, CA 90021
ADDRESS
2020 E 7 th Place & 2045 E. Violet Street, Los Angeles, CA 90021
LOCATION
Arts District
HISTORY
Two industrial buildings: a 32,548 square foot concrete tilt-up produce building built in 2002 and a 10,200 square foot vintage brick warehouse built in 1941.
DESCRIPTION
Separated buildings into two unique parcels. 2020 E 7th Street was leased to an organic produce wholesaler. 2045 E Violet Street was fully upgraded from a blighted warehouse to a Class A creative office building for a single tenant.
SQUARE FOOTAGE
42,748 sf building / 72,208 sf land
GENERAL FEATURES
Polished concrete floors / Elevated deck and planters / Custom monumental door and window system / New kitchen, office, conference and rest rooms / Storm water mitigation / Insulated roof / High efficiency heating and air conditioning systems
CASE STUDY
Strategically located in the emerging area of the Arts District, south of 7th Street and neighboring several key neighborhood assets and popular destinations, 2020 E 7th Place & 2045 E Violet Street are two industrial buildings, a concrete tilt-up produce building built in 2002, and a vintage brick warehouse built in 1941, that total 42,748 of building on 72,208 square feet of land.
Knowledgeable of a strained business partnership, The Borman Group facilitated the acquisition of a 50% interest buy out and new joint venture partnership for the buildings at 2020 E 7th Place & 2045 E Violet Street in July 2014.
The Borman Group repositioned the asset by separating the two parcels. 2020 E 7th Street was leased to an organic produce wholesaler and will be entitled for 300 multifamily units. 2045 E Violet Street was fully upgraded from a blighted warehouse to a Class A creative office building for a single tenant. Work included converting loading bays into new steel window and door assemblies, replacing dilapidated building elements with eco friendly materials, the creation of a highly functional outdoor space and a full mechanical upgrade. The current user is a single tenant in the fashion design business, Splits 59.
FINANCIAL RESULTS
Acquired: 2014
Purchase price: $10,250,000/ $239 psf bldg / $141 psf lnd
CAPEX, TI, LC costs: $1,311,133 / $123 psf bldg
Total Expenses: $11,561,133 / $270 psf bldg
Sales: $32,000,000 / $746 psf bldg / $384 psf lnd
Unlevered Return: 3.0x
Unlevered IRR: 26.08%
Sold: 2019
Holding period: 54 months
PHOTOS
BEFORE
AFTER
