Rare Adaptive Reuse Asset Hits DTLA Market

LOS ANGELES—The Garfield Building, a 12-story historic monument in Downtown Los Angeles that is listed on the National Register of Historic Places, has come to market, GlobeSt.com reports exclusively. The property represents one of the last remaining opportunities to renovate and reposition a historic building in the Downtown market. The property is currently vacant.

“With all of the development and excitement around the South Park area, it is a good opportunity to reposition this building into its full glory and make it a one-of-a-kind asset. There is no other building like it in the area,” Gibran Begum, a managing director at Newmark Grubb Knight Frank, tells GlobeSt.com. “It was built in the 1920s with art nouveau architectural elements that really make it a standout as a development opportunity for a hotel, residential or creative office.” Begum is representing the unnamed seller in the transaction with NKGF managing director Christopher D. Beck and Lee & Associates principals Jim Halferty and Mike D. Smith.

Located at 403 W. 8^th St. in the Downtown market, the 12-story, 102,000-square-foot property was built in 1929. Designed by architect Claud Beelman, it and features art nouveau architecture and art deco designs. Today, the property is located in the heart of the market, near Whole Foods, Bottega Louie, LA Athletic Club, the ACE Hotel and 7th Street's restaurant row. The property is well known in the market, and the sellers have received unsolicited requests for years from brokers and developers. “We have received a lot of interest for this building because a lot of people know it as the last and best in its class. The sellers have always seen the potential, and just haven't known what direction they have wanted to go in over the years that they have owned it,” says Begum. “They would love to see it turn into a reactivated building. With all of the pressure from brokers and developers, they have decided that now is the time.”

As expected, the property has already received strong interest from a broad range of buyers, including institutional money. The sales team has brought it to market unpriced, but, without disclosing his expectations, Begum is confident that they will receive top dollar. “The market is very strong in downtown, and we'll be able to obtain the highest price for a vacant building in downtown,” he says. “We are seeing a lot of interest and activity. We are touring it daily and a lot of the institutional developers are flying into town just to tour and make an offer on the building.”