The property currently houses a five-story parking structure.

LOS ANGELES—A joint venture between boutique developer Parallel Acquisitions and Holdings and Sunrise Real Estate Group have purchased a five-story parking structure on Broadway in Downtown Los Angeles from Joe’s Auto Parks. The developers plan to build a 37,000-square-foot retail center with onsite parking.

Located at 440 S. Broadway, the site is one of the last remaining development sites in the downtown market. Parallel will develop the site with ground floor retail space and 250 parking stalls on the third, fourth and fifth floors. The property has often been hailed the “ugliest” building in the downtown area, a reputation of which the developers are well aware. They plan to invest significant capital in updating the façade as well as the interior spaces to reveal the building’s full potential.

The redevelopment of the property will be part of the ongoing “Bringing Back Broadway” campaign, which has helped attract high-profile brands and developers to the area. The Ace Hotel recently opened close by, as did an Urban Outfitters and an Acne boutique. The street has heavy foot traffic and a high demand for quality retail space.

Colliers International VP Adam Tischer represented the seller in the transaction. The joint venture purchased the property for $6.25 million. This is one of several projects the two parties have underway in the downtown market. Parallel is currently developing several projects in the arts district, while the transaction marks Sunrise’s third acquisition this year, including the purchase of a class-A office building in West Los Angeles. Sunrise purchased the building for $39 million in an off-market transaction with another joint venture partner, 4M Investment Corp.

The involved parties were unable to comment on the transaction prior to publication. GlobeSt.com will update this story with more information as it becomes available.