2136-2159 Bay Street, Los Angeles, CA 90021

ADDRESS

2136-2159 Bay St, Los Angeles, CA 90021

LOCATION

Arts District

HISTORY

Constructed in 1920’s, 30’s and 40’s, 2136-2159 Bay Street is a collection of vintage industrial buildings totaling 14,193 square feet on 48,425 square feet of land that served the corporate office of Hill Brothers Chemical for the past 90 years.

DESCRIPTION

Upgraded building into dynamic workspaces, tying them together through the use of materials, custom hardscape and an elevated car parking stacker system.

SQUARE FOOTAGE

14,193 sf building / 48,425 sf land

GENERAL FEATURES

Polished concrete floors/ Bow truss ceiling / Custom monumental door and window system / New kitchen, office, conference and restrooms / Parking Stacker System / Storm water mitigation / Insulated roof / High efficiency heating and air conditioning systems

PHOTOS

CASE STUDY

Situated along the San Pedro Railroad and the Los Angeles River, 2136-2159 Bay Street is a collection of three distinctive vintage industrial buildings constructed in 1924, 1934 and 1948 totaling 14,193 square feet on 48,425 square feet of land. The property was owned by Hill Brother Chemical since the 1920’s and used to package and distribute construction-related materials.

 

The Borman Group led the acquisition of 2136-2159 Bay Street in an
off-market transaction in the second quarter of 2015 as a complementary piece to the adjoining property 2145-2159 Sacramento Street. The combined properties resulted in a street-to-street, private, creative office campus for a single tenant - an innovation transportation company.

 

The age and condition of the buildings presented early design challenges. The objective was to maintain the unique character and independent function of each building while tying them together in one cohesive campus. Over the course of three construction phases, The Borman Group meticulously restored and upgraded each building into dynamic workspaces, tying them together through the use of materials, elevated walkways and open space. Further site work included stormwater mitigation, custom hardscape, landscape, and an elevated 72 car parking stacker system, one of the first to be installed in Los Angeles.

FINANCIAL RESULTS

Acquired: 2015

Purchase price: $4,700,000/ $331 psf bldg / $97 psf lnd

CAPEX, TI, LC costs: $2,645,173 / $186 psf bldg

Total Expenses: $7,345,173 / $517 psf bldg / $152 psf lnd

Sold as part of a creative office complex

Total return of Creative Office

Combined purchase price: $7,800,000 $205 psf bldg / $105 psf lnd

CAPEX, TI, LC costs: $5,128,273/ $135 psf bldg

Total Expenses: $12,928,273 / $340 psf bldg

Total Sales Price: $24,500,000 / $645 psf bldg / $340 psf lnd

Unlevered Return: 1.9x

Unlevered IRR: 51%

Sold: 2016

BEFORE

AFTER

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