Los Angeles, California – There are many benefits for Commercial Real Estate investors to get into a 1031 Exchange. One of the main advantages of the 1031 exchange is the Tax Deferral of capital gains. When a 1031 Exchange is executed properly, the capital gain taxes are deferred and transferred to the 1031 Exchange Replacement Property. The Tax is not due until the commercial real estate investor sells that 1031 Exchange Replacement Property. There is no limit to the number of 1031 exchanges a commercial real estate investor can complete.
We have news on an Office Building transaction, that may or may not be involved in a 1031 Exchange. A Commercial Real Estate transaction was able to take place due to an assumable commercial mortgage. Hudson Pacific Properties has acquired a 1031 Exchange Candidate at 10950 Washington Boulevard. This Commercial Property is situated in the Los Angeles sub-market known as Culver City, California. Hudson Pacific Properties paid $46 million for 10950 Washington Blvd. which is an Office Building in an excellent location of California.
The Hudson Pacific Properties recent acquisition was made possible with the assumption of an existing $30 million commercial loan. The assumable loans can save the Commercial Real Estate Buyer plenty of time and money. Sometimes the seller may just want to get out of the financial obligation so they offer up the property for sale with the assumable loan. Other examples are when investors may wish to sell an under-performing property and acquire an asset that offers a more lucrative cash flow for a 1031 Exchange transaction. However, Hudson Pacific Properties saw the vale in this prestigious Office Building with assumable financing.
The seller of this 1031 Exchange Candidate was an affiliate of Embarcadero Capital Partners LLC. This Commercial Property is situated in a West Los Angeles area that has excelled as a premier entertainment business district. This California Investment Property is approximately 158,736 square-feet. This Commercial Property is a well designed office property that is approximately 99.3% net leased. This California Commercial Property has an average net lease term of five years.
This California Investment Property sits on a little over 5 acres. The 1031 Exchange Candidate offers a relatively high parking ratio for this Los Angeles sub-market. The NFL (National Football League) net leases the largest amount of space, approximately 95,562 square feet. the NFL’s space consists of office space and the two sound stages used exclusively to broadcast for the NFL Network.
The California Investment Property had renovations completed in 1999. These renovations made this Property more modern, and were made with very high standards. This California Investment Property has an award-winning southwest style of lush landscaping. There is also a cafe on site for the Tenants and Visitors.
The buyer, Hudson Pacific Properties, Inc. is a full-service, vertically integrated real estate company. Hudson Pacific Properties, Inc. focuses on owning, operating and acquiring high-quality office properties. Hudson Pacific Properties, Inc. is also very interested in state-of-the-art media and entertainment properties in select growth markets. Hudson Pacific Properties, Inc. intends to grow their Investment Property portfolio primarily in Northern and Southern California.
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O’Reilly Commercial Realty LLC
Phone: (352) 237-2222