Mark borman
2145-2159 Sacramento Street, Los Angeles, CA 90021
ADDRESS
2145-2159 Sacramento Street, Los Angeles, CA 90021
LOCATION
Arts District
HISTORY
Constructed in 1923, 2145-2159 Sacramento is a 23,785 square foot single story, brick, post-and-beam building on 25,638 square feet of land with historical uses including ice manufacturing, egg distribution and most recently an artist co-op.
DESCRIPTION
Full MEP, seismic, and utility service upgrades, using environmentally friendly building materials such as insulated doors, windows and roof.
SQUARE FOOTAGE
23,785 sf building / 25,638 sf land
GENERAL FEATURES
Polished concrete floors / Exposed brick walls / Wood post-and-beam / Custom monumental door and window system / New kitchen, office, conference and restrooms
GREEN FEATURES
Restoration and conversion of a 90-year old building / Insulated roof /
High efficiency heating and air conditioning systems
CASE STUDY
Situated along the San Pedro Railroad and the Los Angeles River and at the dead end of Sacramento Street, 2145-2159 Sacramento Street is a 23,785 square foot industrial building that was constructed in 1923 on 25,638 square feet of land. At the time of acquisition, the building had many uses including an artist co-op, a rag recycling center, and a wood shop. The Borman Group recognized both the undermarket value of the property and its economic potential with the expanding footprint of the Arts District and demand for creative offices.
The Borman Group led the acquision of 2145-2159 Sacramento Street in an off-market transaction in 2014. Shortly after acquisition, The Borman Group identified a user that needed the entire building to accomodate its growing business. Work was done and delivered over the course of two construction phases. The building was meticulously restored and upgraded into a dynamic, creative workspace that included a full MEP and seismic upgrade, ADA compliance, and build outs that included multiple kitchens, restrooms, executive offices and conference rooms. Further sitework included stormwater mitigation and custom hardscape / landscape.
FINANCIAL RESULTS
Acquired: 2014
Purchase price: $3,100,000 / $130 psf bldg / $121 psf lnd
CAPEX, TI, LC costs: $2,508,509 / $105 psf bldg
Total Expenses: $5,608,509 / $236 psf bldg
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
PHOTOS
BEFORE
AFTER
