LOS ANGELES—A local investor has purchased a 36-unitapartment building in the MacArthur Park area ofDowntown Los Angeles with plans to convert the building into amixed-use complex by addingretail space. Closing in an incredible 17 days,the transaction illustrates the high demand for mixed-useconversion properties in the downtown market.

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Because this is a distressed asset, it presented a series ofchallenges. Sperry Van Ness Rich Investment Real EstatePartners' Shiva Monify, who representedboth the buyer and the seller in the transaction, had to resolve $2million in existing debt on the property. Additionally, theproperty had excessive code violations from the City of Los Angelesthat had to be resolved before the sale of the property. Despiteall of these hurdles, the Monify was able to close the transactionin less than a month.

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Located at 800 S. Burlington Ave. in Los Angeles, the propertyis in a high-demand area where 1,600 units are currently underconstruction just blocks away. The buyer purchased the property for$3.4 million, buy plans to invest significant capital to repositionthe asset and add retail space. Currently, the building is 90%occupied.

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Although South Park and Broadway have been the central hubs ofthe downtown revitalization, development is spreading to otherneighborhoods as well. The arts district has also been a popularsite for developers and investors, particularly for creativeoffice. Recently, the Coca-Cola building sold to adeveloper who plans to build creative office in the former warehouse, andASB Real Estate Investments recentlypurchased five warehouses nearby with plans to convertthem into creative office space, a total investment of $62million.

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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.