Summary

Built in 1988, Media Center is a multi-tenant office building located in North Hollywood, California in an area known as the Media District. This area includes portions of Burbank, Universal City, Studio City and North Hollywood. Universal City, located just to the north of the subject, along Lankershim Boulevard, is the home of Universal Studios and NBC/Universal Burbank, located one mile to the east along the Ventura Freeway, features the office complexes of Disney, ABC, Warner Brothers Studios and NBC Studios.

This submarket of Los Angeles has very high barriers to entry.  Land costs are among the highest in the country, excluding Manhattan. Construction costs have increased 40% during the past 4 years.  The Operator, a Southern California based real estate investment company, has significant experience in managing similar projects in the state. 

At the time of acquisition the building was 93.4% leased to seventeen tenants.  The tenant base features a diversified mix of entertainment, government, legal, real estate/finance and philanthropic foundations. Media Center is located in one of the tightest submarkets in Los Angeles County, with an overall vacancy rate of 3.8%.  The investment has an income and growth oriented investment profile with the current return representing 56% of the total profit.