Commercial Exchange Building Trades Hands

LOS ANGELES—New York-based developer the Sydell Group has purchased the historic Commercial Exchange Building from a group of private investors. The developer purchased the building for an undisclosed amount and plans to completely gut and transform the property into a boutique hotel.

“The seller chose this time to sell the property because there’s a positive momentum in the market right now that’s at an all-time high,” Chris Caras, an SVP at CBRE who represented the sellers in the transaction, tells GlobeSt.com. Caras represented the sellers along with CBRE SVPs Michael Shustak and Phillip Sample. Shustak tells GlobeSt.com, “A contributing factor to these highs is the increase in demand from alternative sources. For the first time, hoteliers are looking for conversions in Downtown Los Angeles. Until recently, this would have been unheard-of.  Competition from hotel, apartments and creative office developers is pushing prices to all-time highs.”