LOS ANGELES-Lowe Enterprises and Megatoys have joined forces to transform two former Megatoys warehouses in Los Angeles' Downtown arts district into a two-building, 320-unit apartment complex, located at 905 E. Second St. Construction on the project began this week with the demolition of the two warehouses, and is estimated to be complete in the third quarter of 2015.

“There is tremendous demand for apartments in downtown Los Angeles and this property is particularly well-suited for infill residential development,” says Tom Wulf, senior VP of Lowe Enterprises.  “It is large enough so that we can create great outdoor spaces including the pedestrian paseo that will be lined with residences, retail and restaurants with outdoor seating.” Wulf, who will be managing the project, also notes that the site is close to public transportation, including a Metro station.

Togawa Smith Martin Architects will design the building with a brick and metal exterior and modern interior residences to LEED-certified standards. The 320 units will include studio, one- and two-bedroom apartments with open floor plans, plank flooring and premier finishes. As Wulf mentioned, the property will feature mixed-use amenities, including restaurants, retail space and outdoor space. The property has four courtyards, one for pets and another complete with a sundeck, spa and grilling area. There is also a unique park connecting the two buildings, called the “pedestrian paseo,” and will be a community area open to both residents and the public.

Lowe and Megatoys are targeting young, creative tenants with this design, and have been conscious of design decisions that will be attractive to this tenant pool. For example, interior units have a mix of vintage and modern details; the underground parking garage features bicycle parking and a storage area, and there is an on-site maintenance workshop; the property clubroom is available for private parties. This type of planning is reminiscent of a recent discussion of the USC Casden Multifamily Forecast, where experts stressed the importance of understanding and knowing the modern renter, who is seeking much different, more tailored amenities than renters in the past.

The downtown market has been experiencing a lot of recent activity. GlobeSt.com recently reported that Kennedy Wilson hired downtown all star Justin Weiss to expand its brokerage platform in the submarket.