Vanbarton Group has secured new financing for a creative office building in Hollywood, months after a special servicer highlighted challenges at the property caused by the pandemic.
Global Atlantic Financial Group provided $28.1 million in financing for 6725 Sunset Boulevard. JLL Capital Markets brokered the deal for the 74,000-square-foot complex on behalf of Vanbarton. Global Atlantic is a former division of Goldman Sachs that was recently acquired by KKR at a valuation of about $4.7 billion.
“Major entertainment and tech companies continue to pour billions of dollars into content creation annually, and Hollywood remains the epicenter of the entertainment industry,” JLL’s Spencer Richley said in a statement. Richley, Todd Sugimoto and Keith Rosso brokered the deal.
Vanbarton acquired the property for $38 million in 2018, and recently completed a multimillion-dollar renovation of the five-story building, with upgrades to its private courtyard, common areas, lobby, entrances and corridors.
The new debt replaces a $21 million commercial mortgage backed security loan on the property that matured in January. That loan had been transferred to special servicing in July 2020, with servicer commentary noting that tenants had been hurt by the shutdown of the movie industry in the early months of the pandemic. The loan remained current on monthly payments through the end of the loan term, and it was transferred back to the master servicer in September.
According to the latest commentary from the special servicer, occupancy at the property had fallen from 73 percent in 2019 to 57 percent in 2020. At the time of the acquisition, the seller’s broker told Bisnow that several upcoming expiries gave the building “a unique value-add profile.”