Jordan Kashfian on the Los Angeles Commercial Real Estate Market and Vertical Integration
As Fortune 500 executives continue to advocate for their employees to return to the office, all classes of commercial real estate have seen a recent increase in activity. Despite the initial scare during the first wave of COVID-19, the commercial real estate market is back to pre-pandemic norms. Specifically, the Los Angeles real estate market has been on hitting some historic highs since the very brief drop at the start of the pandemic.
Consistent with positive institutional predictions about the commercial real estate industry in general, like that of J.P. Morgan, economic forecasters and experienced investors are keen on Los Angeles’s commercial real estate prospects. Illustrating this fact, Los Angeles’s industrial real estate market has had the second-lowest vacancy rate in the country for over three years. Further, the net absorption of this subsector of LA’s commercial real estate market was among the highest on record in 2021 — garnering interest from important tenants like Amazon, FedEx, and Omni Logistics. Further, similar reports note that Los Angeles’s office real estate subsector has seen deals for hundreds of thousands of square feet worth of office space for major players like HBO, Riot Games, and Roku.
As Los Angeles commercial real estate continues to flourish, a handful of real estate investors in the region are capitalizing on these market trends. Jordan Kashfian is an experienced commercial real estate investor and entrepreneur working with all real estate asset classes in the Los Angeles area. With a wealth of experience, a unique ability to identify valuable deals, and robust property management capabilities, Kashfian is a vertically integrated investor.
Kashfain was recently involved in a notable deal for the purchase of 5507 Hollywood Boulevard. The 39,000 square-foot retail complex sold for an impressive $30.4 million. Valuing de-risked investments as well as high growth potential, Kashfian was partially enticed by the complex’s pre-existing leases with growing businesses. To this point, Petco and Marshalls, two of the tenants at 5507 Hollywood Boulevard, have been outperforming the market with Petco reporting $159 million in profit during the pandemic and TJX Companies (Marshalls’ parent company) reporting a 51% increase in net sales in 2021.
Working on deals ranging from $2.6 million to $30 million, Kashfian is as versatile as he is disruptive. Most of Kashfian’s deals are at-value properties, while some are cash-flowing generational assets. Overall, Kashfian and his team own more than 50 properties in the greater Los Angeles area. In addition to 5507 Hollywood Boulevard, Kashfian has been involved in other high-profile commercial real estate deals in the region like that of 2221 West Olive Avenue in Burbank, California. Kashfian’s experience and presence in the region have enabled him to become a market expert and leader in his niche as well as develop a trusted network
Kashfian has been able to distinguish himself from other investors in the area partially due to his vertically integrated, hands-on, property management approach. Kashfian goes above and beyond, ensuring the quality and profitability of his investments, by taking ownership of the property management responsibilities for the majority of his properties. Kashfian is committed to this vertically integrated strategy, as opposed to outsourcing the property management, because this tactic has been a key asset in adding value to his portfolio.
With no plans of slowing down, we are excited to see how Jordan Kashfian continues to grow his portfolio in Los Angeles. Currently looking for new opportunities, check out Kashfian’s Instagram account for more information.