Fine Arts Building - Los Angeles, California« back to Our Projects
106,000 square-foot, 12-Story Historical Office Building.
Challenge / Description
Originally constructed in 1927, The Fine Arts Building was and continues to be one of the most historically significant buildings in Downtown Los Angeles. It had been renovated in 1984 but by 1998, the project had a large debt that was coming due and the value of the building was considerably less than the mortgage. The current ownership syndicate did not have capital to handle tenant rollovers much less pay off or refinance the debt.
Barker Pacific and its partners negotiated a purchase of the note for a substantial discount and concurrently negotiated an arrangement with the ownership to hand over the title to the building once the note acquisition was completed from the New York based institutional seller. Upon completion of the acquisition of title to the property, the building was completely released under new leases with extended terms and substantially higher rental rates. The occupancy was also increased from 84% at acquisition to 99% within three years. In addition, the electrical systems were replaced and substantial improvements made to the life safety systems. The project was then sold in 2003 for a profit over its cost.
Fully renovated 1983. Full life safety upgrade 2000 to 2002. Sold in 2003.
Barker Pacific Group, Paxton Properties Inc. and The FERI Trust of Germany.
Wells Fargo Bank
- Martin Partners
- Hardy, Holzman & Pfeiffer
- Ciao Trattoria