LOS ANGELES—A joint venture between ASB Real EstateInvestments and Blatteis & Schnur hasacquired five warehouse properties on Palmetto andMateo Streets in the arts district of Downtown Los Angeles for$32.5 million. The firm plans to invest an additional $30 million,for a total investment of $62.5 million, to create a125,000-square-foot retail property and a430-stall parking structure.

The redevelopment will convert industrial zonedproperties into commercial retail space. However, developers planto keep the buildings' industrial elements, like the 24-footceilings and large open floor plates. Once complete, thedevelopment will feature 900 feet of ground-level store frontage.ASB hopes to attract a tenant mix of retail, restaurants and barsto the center, which will have one anchor tenant, either a majorretailer or a grocer, which at this point, does not exist in thearts district area.

The arts district is one of the primary growth areas in thedowntown market, with many developers snatching up remainingindustrial space and converting it into commercial space.GlobeSt.com recently reported that Atlas LA 4^thStreet LLC purchased the former Coca-Colabuilding in the arts district neighborhood for $19 millionin what amounted to the largest single industrial acquisition in the past threeyears. Having purchased the building for $19 million,the developer plans to convert the property into creativeoffice space.