LOS ANGELES—One of the largest redevelopment sites in Downtown Los Angeles has traded hands. Located on 10th Street in the Fashion District, the property has eight industrial properties on 4.6 acres and sits on two parcels. The property traded hands between two unnamed investors for $38.8 million.
The site is fully leased and has an in-place income stream. The seller operated it as an industrial property, but decided that this was good market timing to sell. This created a great opportunity for the buyer to operate the property while conceiving a long-term redevelopment plan. “This buyer was looking at the property both near term and long term,” Mike Malick, VP of investments at Marcus & Millichap, tells GlobeSt.com. “As many of the buyers in the Downtown Los Angeles industrial market, they have a foot in both the owner-user and the investor-developer side of the trade, and that is a great combination, because you can develop the property with income while you determine what the best long term strategy is with out the pressures typically faces.”
At this point the buyer's long tern development plan for the site is not known. However, Malick thinks the property isn't currently being utilized as its highest and best use. “With the convergence of the fashion district with the arts district, and with more and more tech oriented firms considering Downtown, all of these could be drivers for seeing a change in the long-term.” The highest and best use for the property could be showroom-type development for the fashion industry or office, he adds.
The Fashion District hasn't seen the same growth as the remainder of the Downtown market, but there are ample opportunities for development. “This area has had phenomenal growth over the last few years and as grown physically. There remain [development] opportunities,” says Malick. “What remains now is regulatory and government clarity. When we have that, many of the pockets [that haven't been impacted by the renaissance] will go from obsolete to potential renovation to brand new development.”
LOS ANGELES—One of the largest redevelopment sites in Downtown Los Angeles has traded hands. Located on 10th Street in the Fashion District, the property has eight industrial properties on 4.6 acres and sits on two parcels. The property traded hands between two unnamed investors for $38.8 million.
The site is fully leased and has an in-place income stream. The seller operated it as an industrial property, but decided that this was good market timing to sell. This created a great opportunity for the buyer to operate the property while conceiving a long-term redevelopment plan. “This buyer was looking at the property both near term and long term,” Mike Malick, VP of investments at Marcus & Millichap, tells GlobeSt.com. “As many of the buyers in the Downtown Los Angeles industrial market, they have a foot in both the owner-user and the investor-developer side of the trade, and that is a great combination, because you can develop the property with income while you determine what the best long term strategy is with out the pressures typically faces.”
At this point the buyer's long tern development plan for the site is not known. However, Malick thinks the property isn't currently being utilized as its highest and best use. “With the convergence of the fashion district with the arts district, and with more and more tech oriented firms considering Downtown, all of these could be drivers for seeing a change in the long-term.” The highest and best use for the property could be showroom-type development for the fashion industry or office, he adds.
The Fashion District hasn't seen the same growth as the remainder of the Downtown market, but there are ample opportunities for development. “This area has had phenomenal growth over the last few years and as grown physically. There remain [development] opportunities,” says Malick. “What remains now is regulatory and government clarity. When we have that, many of the pockets [that haven't been impacted by the renaissance] will go from obsolete to potential renovation to brand new development.”
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