LOS ANGELES—The L&R Group of Cos., a family-owned parking company, has purchased a 1.5-acre site in Downtown Los Angeles from a private family trust for $30 million. Located at the edge of the Figueroa corridor in Downtown Los Angeles, the site is currently occupied by a Toyota dealership, which is planning to move a few blocks away. While there is an abundance of development in the immediate area, this particular site has strict zoning policies that could hinder future mixed-use development.
“This property represents the virtual end cap to the corridor along Figueroa, and one of the last remaining undeveloped parcels in that last stretch of Figueroa,” Adam Tischer, SVP at Colliers International, tells GlobeSt.com. “Parcel after parcel is being acquired by local and international entities, and so they recognized that there would be increased land and development in the area and thought this would be an attractive piece to acquire.” Tischer represented the buyer in the off-market transaction, while Colliers EVP Tom Lagos represented the seller.
With ample development surrounding the site, including some projects that had similar zoning issues, the developer is confident that they would be granted a variance if they decided to pursue a development on the site. “The zoning is pretty old on the property, and other developers have been granted a variance, including an apartment development that is one block away,” says Tischer. “That suffers from the same zoning issues that this property suffers from. I think it is possible that you can get a variance.”
The zoning issues, however, may not be a problem because, at this point, the developer doesn't have specific plans for the asset. “They are not sure what they are going to do with the property,” adds Tischer. “They could hold it, they could possibly build a parking structure on it, or it may become a mixed-use development. The plans aren't settled yet.” The developer currently has a portfolio of more than 100 parking lots in the Downtown market.
Aside from the zoning problems, this sale also shows the expansion of the Downtown development boom, all the way to the 10 freeway, according to Tischer. “This shows the continued momentum and interest in Downtown Los Angeles,” he says. “Interest has expanded all the way to the 10 freeway in the South, a formerly overlooked part of Downtown.”
LOS ANGELES—The L&R Group of Cos., a family-owned parking company, has purchased a 1.5-acre site in Downtown Los Angeles from a private family trust for $30 million. Located at the edge of the Figueroa corridor in Downtown Los Angeles, the site is currently occupied by a Toyota dealership, which is planning to move a few blocks away. While there is an abundance of development in the immediate area, this particular site has strict zoning policies that could hinder future mixed-use development.
“This property represents the virtual end cap to the corridor along Figueroa, and one of the last remaining undeveloped parcels in that last stretch of Figueroa,” Adam Tischer, SVP at Colliers International, tells GlobeSt.com. “Parcel after parcel is being acquired by local and international entities, and so they recognized that there would be increased land and development in the area and thought this would be an attractive piece to acquire.” Tischer represented the buyer in the off-market transaction, while Colliers EVP Tom Lagos represented the seller.
With ample development surrounding the site, including some projects that had similar zoning issues, the developer is confident that they would be granted a variance if they decided to pursue a development on the site. “The zoning is pretty old on the property, and other developers have been granted a variance, including an apartment development that is one block away,” says Tischer. “That suffers from the same zoning issues that this property suffers from. I think it is possible that you can get a variance.”
The zoning issues, however, may not be a problem because, at this point, the developer doesn't have specific plans for the asset. “They are not sure what they are going to do with the property,” adds Tischer. “They could hold it, they could possibly build a parking structure on it, or it may become a mixed-use development. The plans aren't settled yet.” The developer currently has a portfolio of more than 100 parking lots in the Downtown market.
Aside from the zoning problems, this sale also shows the expansion of the Downtown development boom, all the way to the 10 freeway, according to Tischer. “This shows the continued momentum and interest in Downtown Los Angeles,” he says. “Interest has expanded all the way to the 10 freeway in the South, a formerly overlooked part of Downtown.”
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