Details & Info
1314 Westwood Boulevard, Los Angeles, CA
Two-story, 11,480 sf, 1950’s courtyard-style office building
Challenge
Under-parked and with 90% turn-over in the coming two years, the market potential to most buyers was not apparent. Low rents and short-term leases created poor performance on paper as judged by traditional metrics and was likely to make financing difficult. Tuck-under-parking would require structural work. The outdated décor and the street-facing rectangular box further mislead prospects.
Solution
- Remeasured the building to BOMA standard, resulting in an 18% increase and updated CAD drawings. The resulting square footage created opportunity for both the sales pricing and future rents.
- Reframed potential turnover as a solution to low rental income by demonstrating that area rents were significantly higher.
- Identified additional parking within walking distance.
- Expanded awareness of geographical connectivity without a car, including a plethora of “last mile” solutions, a Metro station within one block, bike lanes throughout area, and the area’s general walkability.
- Highlighted internal features including central courtyard, abundance of natural light from irregular shape and dual window lines, patios, and operable windows.
- Identified two likely buyer profiles: owner-occupiers of professional offices or medical service providers, and value-add developers looking to have a material impact on income potential.
Result
- Successfully reimagined the project. Redevelopment as a biotech incubator leveraged proximity to university, transportation, and workforce amenities in shared outdoor spaces and Westwood Village.
- Escrow structured to assure close with short contingency period, release of significant deposit, and longer period to close. Allowed buyer to begin pre-development tasks and wait for lease turnover without taking on mortgage burden. Seller continued to receive income and gained time to reposition proceeds.