The following results were achieved:
Net operating income increased by 30% in less than two years
$2 million or 70% increase in value in the first twenty-four months of ownership
This property, consisting of 44,000 square feet and strategically located 3 miles from Los Angeles International Airport, was formerly leased to light manufacturing and assembly tenants. At the time of NSB's acquisition, the in-place rental for a substantial portion of the space in the property was at 30% below market rates. The company was aware of the increased demand by entertainment-related firms for such well-located industrial/office space and the scarcity of such space due to the lack of available new product. NSB launched a program to identify appropriate tenants to replace the main tenant, recognizing that the significant amount of on-site parking added value and flexibility to the building. The execution of a new lease with an entertainment/media- related tenant occupying more than 30,000 square feet (subsequently expanded to more than 37,000 square feet) confirmed NSB's original vision of this property as a high-image asset generating highly attractive cash-on-cash returns.