2707-2711 Beverly Blvd, Los Angeles, CA 90057

29,024 SF Warehouse/Creative Office/Showroom

Sold: $13,000,000

Property Overview

The Property

● 2707 - 2711 Beverly Blvd, Los Angeles, CA 90057

● Asking Rent: $2.00 PSF NNN

● Asking Sale Price: $13,500,000

● Total SqFt: 29,024

● Year Built: 1957

Interior

● Divisible: 15,000 – 29,024 SF office/industrial/showroom/retail

● Existing high-end, renovated creative offices with reception area

● Kitchen with large employee cafeteria space

● Beautiful warehouse/showroom layout with street garage access

● High Ceilings with polished slab floor

● Small passenger elevator for handicap accessibility

Location

● Terrific visibility and signage on Beverly Blvd

● 101 & 110 Freeway access within ¼ mile

● Located in Rampart Village, just West of Downtown LA; near

Koreatown and Echo park

● 2 Metro stops within 1 mile

Ample Parking

● 85-100 private parking spaces on expansive rooftop deck

The Deal Story

The Glaser Group is pleased to announce the successful sale of 2707 Beverly Blvd in Los Angeles. We initially listed this 29,024 SF warehouse / creative office for lease in October 2022, asking $2.30/SF NNN. It's a unique flex space with low ceilings that made it particularly hard to lease.

Office product isn't doing too hot either as we all know. CBRE had already expired their listing on it.

So, as brokers do, we asked our client if he'd ever consider selling. He had been working on entitlements to develop a 119-unit mixed-use apartment building, so he wasn't too eager to let it go. But when he threw out a crazy number ($13,500,000), which was at least $4MM too high, we said: "Eh screw it, why not?"

For context, our client bought the site for $2,800,000 in 2010.

After 14 months on the market we did 17 leasing tours, got 4 lease LOIs that went no where, and got 3 verbal purchase offers in the $9MM range. Meanwhile interest rates started to sky rocket. 🚀 We continued marketing the property, but things weren't looking good. Until one day in January, we got a call from an agent with a 501(c)3 non-profit that was very interested. They were a government funded hospitality training academy, and they needed a facility ASAP to train staff for the 2028 Olympics. It was perfect, and money wasn't an issue.

After some back and forth, we opened escrow for $13,000,000, All-Cash. Thank you Federal Government. 🏦 We were under contract for $447/SF and $109K / buildable unit. Average development comps in the area are at $315/SF and $75K / buildable unit.

As you can imagine, our client couldn't believe it. And neither could we.

Then as if it couldn't get any better, we were informed 1 month into escrow that 501(c)3 non-profits older than 10 years were FULLY EXEMPT from the new Mansion Tax (5.5% for deals above $10MM).

Our buyer had been around for 11 years. Wow.

Our client not only sold the building for $4MM+ more than it's worth, but he saved 5.5% in transfer taxes. And we made the Mansion Tax exemption cutoff by just a handful of months. The Mansion Tax savings equated to $715,000.

So while, yes, I believe we did a great job for our client, I'd be lying if I said we didn't all get ridiculously lucky. None of us ever thought this site was going to sell, and the 5.5% Mansion Tax exemption was just the cherry on top. 🍒 Deal of my career (so far!).

Reach out with any questions, or if you're interested in selling a similar site.