Solving a “Problem” Asset

PROBLEM

A family partnership owned this 46,000 SF office building in Calabasas since the early 2000s and the major tenant that occupied over two-thirds of the building was vacating the property. At the same time, the existing loan was coming due on the property. With the tenant vacating, the owner would not be able to refinance the property and had to either fill the vacant space or sell the property and pay off the loan.

SOLUTION

Ownership hired LAA to perform a strategic analysis on the asset and determine the best course of action given the impending loan due date and ownership’s goals.

OUTCOME

LAA brought in an owner/user buyer that was willing to pay a strong price and perform “all-cash”. The speed of the transaction allowed owner to sell the property prior to the loan coming due and perform a 1031 exchange into more stable long term leased assets with less management responsibility.