SKB Case Studies

CNN Tower, Hollywood, CA

Transaction Summary

Investment Date:
June 2004
Property Description:
Class A Office
Hollywood, CA
Equity Invested:
$11.4 million

Investment Highlights

  • Through its longstanding relationship with the broker, SKB was introduced to the asset and began due diligence prior to its competitors in the marketplace
  • Purchased for $750,000 less than the highest bidder as a result of SKB’s willingness to expedite due diligence, offer a non-refundable deposit and close according to agreed upon timeframe
  • Opportunity to own one of the most recognizable office properties in a transforming neighborhood and increase occupancy from 87% as the neighborhood became more desirable for office space
  • Opportunity to capture unrealized revenue through new signage, installation of automated parking control equipment and redevelopment of the ground floor as retail capitalizing on Sunset Boulevard frontage
  • Increased occupancy from 87% to 95% and raised rental rates by 10% in 17 months
  • Relocated ground floor tenant and began converting office space to retail, recognizing a 62% increase in rent
  • In 2006, SKB sold the asset.