6400 LAUREL Canyon
From 40% occupancy to 95 % occupancy, plus 20% higher rents in less than 2 years.
The office building at 6400 Laurel Canyon presented an attractive opportunity in an incredible area. North Hollywood area boasts one of the highest population densities in Southern California, and by extension, the U.S. The intersection of Laurel Canyon and Victory in North Hollywood has an average daily car count of 43,000 and is located just two blocks from the 170 freeway. All of these factors combine to give real estate in this area intrinsic value beyond most locations.
This property, however, had been purchased by the previous owner at the height of the dot-com bubble with rental expectations that were too high. The ownership, consisting of an out-of-the-area sponsor, with an out-of-the-state investor, and a leasing team from the Westside of LA, needed to sell. At 60% vacancy in a 92% occupied market, it was clear that the property needed a new strategic direction.
Milan purchased the property after a thirty-day escrow and set to work implementing a program of small spec suite development and aggressive initial move-in incentives. By December 2006, 30 months after Milan's purchase, the property boasted 95% occupancy with rents 20% higher than forecasted.