Vanbarton Group is doubling down in Hollywood with an office buy on Sunset Boulevard.
The New York-based firm paid just under $38 million for a five-story office building at 6725 W. Sunset Boulevard from Costa Mesa’s Crown Realty & Development, according to CoStar. The 55-year-old building is nearly 74,000 square feet. The deal includes a three-story parking garage with 224 parking spaces.
The sale pencils out to around $464-per-square-foot. Vanbarton has plans to renovate the building and then raise rents, according to Crown’s representative, Kevin Shannon of NKF Capital Markets. Crown purchased the building in 2005 for $19.5 million. It’s 100 percent occupied and has maintained a 92 percent average occupancy under Crown’s ownership, Shannon told CoStar.
The distinctive red building is less than a mile from the six-story office building on Hollywood Boulevard that Vanbarton purchased from CIM Group in September. Vanbarton paid just under $500-per-square-foot for the property, which counts WeWork and Live Nation as tenants.
Hollywood has seen an influx of tech and creative tenants in recent years, which has helped push up rents. Rents at Class-A spaces rose to $4.81-per-square-foot in the first quarter, up from $4.51 a year ago, according to Savills Studley.
[CoStar] – Dennis Lynch