Secures high returns, future development opportunity in emerging LA submarket
Los Angeles, CA – (August 6, 2020) — California-based Bolour Associates Inc. (BOLOUR), a privately-owned real estate investment, development and finance company, has completed the acquisition of 3333 W. Temple St. in Los Angeles. The $5.65 million sale-leaseback includes a 10-year lease by international tenant Rentokil North America, and future development opportunity in an emerging Los Angeles growth corridor.
“Today’s low cost of financing and the market’s strong long-term outlook made this transaction a win-win opportunity,” said BOLOUR CEO Mark Bolour. “The tenant is able to remain in place under a long-term lease and BOLOUR adds an asset to its portfolio with tremendous future development potential in a central, transportation-oriented Los Angeles community.”
Located immediately off of Highway 101 and Silver Lake Boulevard, 3333 Temple Street includes 44,931 square feet of land and a 11,681-square-foot building fully occupied by Rentokil North America, a wholly owned subsidiary of UK-based, FTSE 100 company Rentokil Initial, one of the largest business service companies in the world. Rentokil North America will occupy the Temple Street building under a 10-year lease.
The Temple Street property sits at the intersection of multiple growth submarkets, including Silver Lake, Echo Park and Koreatown. The property is located within the Vermont/Beverly transit-oriented community, is within walking distance of several new development projects and is surrounded by redevelopment activity spurred by tenant and market demand.
“Given the strength of this international corporate tenant, BOLOUR was able to secure a very attractive financing, leading to a high single-digit cash-on-cash return in year one,” said BOLOUR Vice President, Development Adam Eisenberg. “We were able to achieve these returns while still maintaining exceptional long-term land value and development potential.”
JLL Vice President Jake Wagner represented the seller of 333 Temple Street, Rentokil North America. Eisenberg managed the transaction for BOLOUR.