LOS ANGELES—Bonnis Properties has acquired the historic Foreman & Clark Building in the Historic Core of Downtown Los Angeles for $52 million from Dr. Kyung Ku Cho. The buyer has not revealed plans, but will likely renovate and reposition the property into retail and residential. The Historic Core has seen a tremendous impact from the downtown renaissance, and has a strong upside for investors.

“This was a good opportunity for the buyer,” Derrick Moore, a principal at Avison Young, tells GlobeSt.com. “Overall, when looking at the increases in values over the last five to ten years, the Downtown Los Angeles market in general has proven to be a good place to invest. I believe the amount of domestic and foreign capital being placed in this submarket along with the additional demands from interested groups further suggest a good and healthy investment horizon for DTLA.” Moore represented the buyer in the transaction, while Phillip Sample and Chris Caras of CBRE represented the seller.

Bonnis saw strong competition for the asset from other buyers, but leveraged its reputation in the industry to win the deal. “The current buying environment is quite competitive,” adds Moore. “As one of the most active professionals in this marketplace, along with the great professionals representing the seller, we worked together as a cohesive group for the benefit of all involved. This will be a great redevelopment project for the entire Downtown community.”

Built in 1929, the historic 13-story property is 147,346 square feet and sits on .28 acres. The property is adjacent to other major rehabilitation projects, like the Ratkovich Co.'s the Bloc. “DTLA is continuing to see an expansion and increase of hospitality, residential, retail, and creative office uses,” Moore says. “Having another asset being elevated to a higher and better use than in previous decades is a testament to the strength and continued growth of this marketplace. More residences, improved retail, and an intelligent and diverse demographic, as displayed with our professionals, residents, and visitors, are the key components for a well-balanced community and one that will continue to attract the investment community to DTLA.”

Instant Insights /

DTLA Investors Set Sights On the Historic Core

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