When acquired in December of 2005, 5900 Wilshire had long lost its status as an icon in the Miracle Mile area of Los Angeles; an unwelcoming lobby, broken down elevators, barely functioning heating and cooling systems, and a leaking roof were only some of the problems the building faced. Directly across from the LA County Museum of Art, the 31 story, 490,000 square foot building had rental rates and occupancy both more than 30% below market. The development strategy was to rebuild the building from the inside out, reposition it in the market place as a â€śTrophyâ€ť Class A building and release it to media and entertainment related tenants.
Purchased for $102.5 million, with an additional capitalization of $23.5 million for capital improvements, in a partnership with Prudential Real Estate Investors. Mass Mutual provided a loan in the amount of $63 million and the balance of $63 million provided with equity.
The Ratkovich Company has successfully restored 5900â€™s iconic status by successfully leasing over 220,000 square feet of space at an average lease rate of over $3.25/square foot. The building is 90% leased and will soon see the addition of a white tablecloth restaurant and a new, cafĂ© building on the Northwest corner of the property. After successfully completing the first two phases of the development, the propertyâ€™s value has increased by over 75% since acquisition.go to the 5900 WILSHIRE website >>