Bought for $30M. Sold for $11M. Still Vacant.

What Happened

The building is a one story brick flex building from 1940. It has dock high doors, a big gated yard and a showroom on Adams. It sits near La Cienega and Washington.

Redcar Properties' group bought it for $30M in Sep 2021.

Redcar planned to add 27,008 SF and turn it into a 48,906 SF, three story office building with 67 parking spaces. The city approved the plan in May 2024. The office plan was approved but never built, and the approval runs to May 2027.

In July 2025, Newmark put the loan up for sale in a big pool of mostly bad loans. The brochure listed about $20M still owed on this one.

On Aug 6, 2026, the lender took it back. The deed went in place of a foreclosure, with no price on it. It was not an auction.

On Oct 6, 2026, it sold for $11M. Bisnow names the buyer as Epicenter Landcorp. Its cofounder, Mikel Elliott, also cofounded Quixote Studios. Epicenter plans to fix up the building and find a tenant, maybe a light making, aerospace or tech user.

It was one parcel and one sale. It was not split.

What I See as an Owner

I build and own buildings in LA. I am seeing prices drop 30% to 70%, and this is one brutal real estate crash. This sale fits right in. $30M in 2021. $11M in 2026. That is 63% less.

It is not just this street. In Glendale, a 24 story office tower sold for $70M. The owner paid $179M in 2017. On Broadway downtown, a fully leased office building sold for $5M. It sold for $13M in 2018. In West Hollywood, a small office on Holloway Drive sold for $2.6M. It sold for $4.7M in 2022. At Beverly and Fairfax, I was told $40M when I called. It sold at auction for $7.21M.

At $11M, I think it is still expensive. That is $448 per SF of building and $190 per SF of land. In a crash, the buyer who gets rent first wins.  I

Epicenter's Mikel Elliott helped build Quixote Studios, so his contacts may help fill it. Reports point to manufacturing or aerospace tenants. I see studio use as a maybe, not a plan.  If he gets an aerospace tenant in there then he is going to add massive value.  

Nearby asking rents run from $2.10 per SF a month on Hayden Avenue to $3.95 for redone space on Steller Drive, with tenants paying property costs. My estimate is $3 per SF a month if he gets the Aerospace tenant. On 24,530 SF, that is about $74,000 a month, or about $883,000 a year.  That might take the value to $15M then. 

My estimate for the empty months: 60% debt at 7%, interest only, plus $15,000 a month for taxes, insurance and upkeep. That is about $53,500 a month, or $642,000 a year, before repairs and leasing costs.

Sources

County deed history (bdhomes.com, Reliance public record). Compass public record. CoStar sale record. Newmark "Project Grizzly" loan sale brochure, July 2025. City of Culver City staff report, case P2024-0038-SPR/AM, May 8 2024. Urbanize LA. Bisnow, Oct 27 2026. L.A. Business First, Oct 27 2026. Kidder Mathews Q3 2026. The Real Deal, Feb 3 2026. Commercial Observer. CommercialCafe / Yardi. LoopNet.

Building size: I use 24,530 SF from the assessor. Other sources show 21,898 to 34,316 SF.

Photo: Google Street View.