One Santa Fe Leasing Reaches 90%

LOS ANGLES—One Santa Fe, a recently opened 438-unit apartment complex in the arts district, has reached 90% occupancy. The development from McGregor Brown and an investment pool led by Canyon Partners Real Estate was one of the first for-rent, ground-up apartment developments to come to the arts district. The successful lease-up shows that the Downtown market, even in more emerging neighborhoods like the arts district, is continuing to see an influx of new residents.

“The rental rates and the pace of absorption at the property really reflect how well the community has received the project,” Charlie Rose, senior director at Canyon Partners Real Estate, tells GlobeSt.com. “We have been pleasantly surprised. We also are proud that we have added 88 affordable units to the community, which we reserved for households earning less than 50% of the area median income, including many artists.”

The property welcomed its first guests in September last year, and the development was officially completed in February 2015. In addition to hitting residence-leasing goals earlier than expected, the property has also welcomed new retail tenants. Restaurant ediBOL is now open and new retail leases have been signed with the BENJAMIN salon, full-service restaurant and cocktail bar Westbound and, scheduled to open this winter, Amazebowls.

Since the property is already nearing stabilization, Canyon may—in accordance with its business plan—exit the property earlier than it originally anticipated. “Canyon operates closed-end real estate private equity funds with a typical holding period of 3-5 years,” says Rose. “Our business plan for One Santa Fe was to complete construction, stabilize the asset and sell upon stabilization. As we are nearing stabilization, the investment sales market in Downtown L.A. remains strong, which should allow for us to successfully execute our business plan.” The leasing success has far exceeded expectations.