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 4thStreet 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.

|

According to Robert Bellinger, president andCEO of ASB Real Estate Investments, this is a nationwide trend. Heexplains that demographic shifts in major urbanareas across the country are helping to revive old warehouse spaceand convert it into useable and resident-friendly retail,multifamily and office space. He emphasizes thatthe company will both honor the history and feel of theneighborhood, while creating a convenient retail space forresidents.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.