Mark borman
2145-2159 Sacramento Street /
2136-2159 Bay Street, Los Angeles, CA 90021
ADDRESS
2145-2159 Sacramento Street / 2136-2159 Bay Street, Los Angeles, CA 90021
LOCATION
Arts District
HISTORY
Constructed in the 1920’s, 30’s and 40’s 2145-2159 Sacramento / 2136-2159 Bay Street is a collection of four vintage industrial buildings totaling 37,978 square feet on 74,063 square feet of land with historical uses including ice manufacturing, egg distribution, an artist co-op and the corporate office of Hill Brothers Chemical.
DESCRIPTION
Assemble buildings and land into a single, dynamic, creative office campus by combining construction materials, elevated walkways, parking system, and open space.
SQUARE FOOTAGE
37,978 sf building / 74,063 sf land
GENERAL FEATURES
Polished concrete floors / Exposed brick walls / Wood post-and-beam / 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
CASE STUDY
Located in the Arts District of Los Angeles, 2145-2159 Sacramento Street / 2136-2159 Bay Street is a collection of four, one and two story distinctive, vintage industrial buildings totaling 37,978 square feet situated on 74,063 square feet of land and bound by Sacramento and Bay Streets and the Los Angeles River.
Shortly after the purchase of 2145-2159 Sacramento in 2014, The Borman Group led the acquisition of 2136-2159 Bay Street in 2015 with the vision of combining both properties into one creative office campus. Reimagined in multiple construction phases over an eighteen-month period, the property underwent full MEP, seismic, and utility service upgrades while focusing on environmentally friendly building materials and methods such as energy-efficient roofs and site stormwater mitigation.
The end product is a rare 1.7 acre property with fully restored historic era buildings, ample parking, open space and security that serves as the world headquarters for a single tenant - an innovation transportation company, Hyperloop-One.
FINANCIAL RESULTS
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
