The buyer of the Pegasus is a newly formed joint venture calledBSP/KOR, which acquired it from a KOR/Lubert-Adler partnership. Thenew ownership plans to renovate and upgrade all 322 units.

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The 13-story Pegasus building, situated between WilshireBoulevard and West SIxth Street in the city's financial district,includes 12,500 sf of retail space occupied by the Daily Grill,Rosenaur Wu, Downtown Florist and Café Primo. It was built in 1949and formerly served as the corporate headquarters for Mobile OilCo.

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Marc Renard, managing director of Cushman & Wakefield'sSouthern California Capital Markets Group, comments that thetransaction demonstrates the "continueddemand for urban-infill,well located properties in high-barrier-to-entry markets," despitethe national slowdown in investment property sales. Renard saysthat the property proved "extremely attractive to a wide variety ofinvestors."

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The Kor Group purchased the Pegasus building in 2001. When theLos Angeles-based company opened the doors to the Pegasus in 2003after converting the former office building into apartments, it wasbilled as the largest adaptive reuse project in Los Angeles at thetime. It remains one of the largest adaptive reuse projects inDowntown Los Angeles.

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According to Alina Mardesich, vice president of Buchanan StreetPartners, once the renovations are complete, the property "will bebetter positioned to compete with other upscale apartment towers inthe area." Since the conversion of the Pegasus, a host of newmultifamily buildings have been completed in Downtown L.A., some ofthem via conversions of office buildings and some in ground-upconstruction.

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The Pegasus is adjacent to a number of high-profile properties,including the Standard Hotel, the California Club, the JonathanClub and the Los Angeles Public Library. It is within walkingdistance of the Staples Center, L.A. Live and the Los AngelesConvention Center.

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