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9/11/19
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A 25.8k sf retail property in Downtown Los Angeles was purchased for $10.25 mil ($397/sf) by 4D Development & Investment. The new owner plans to redevelop the property, located at 1201 S. Los Angeles Ave, into a retail, mixed-use project.
The property sits in DTLA’s Fashion District neighborhood. It consists of five retail and wholesale tenants that occupy a total of approximately 20.4k sf. Current tenancy allows the new owner to maintain an income stream while seeking entitlements and permits for a mid-rise mixed-use project. While the existing zoning is M2-2D, TOC Tier 3, the site sits within an area of the DTLA 2040 plan, allowing for increased density and height.
Patrick Wade, Alex Kozakov, Jonathan Farasat, Alexis Abad and Matt Greenberg with CBRE represented the buyer, a real estate investment and development company based in Los Angeles and headed by David Pourbaba. The team also repped the seller, a private Los Angeles-based family.
“The seller had owned the property for decades, and they did not want to develop the property themselves but understood the highest and best use of it was to reimagine it into a mixed-use project,” said Wade. “The buyer has constructed multiple projects in Downtown Los Angeles and will undoubtedly create an exciting new venue.”
Kozakov added, “There was tremendous interest in the offering, as we received about a half dozen offers from both private family offices and seasoned developers. While there are currently no entitlements for development in place, the buyer acquired the property with plans to go through the permit and entitlement process post-closing.”
Retail vacancies in Greater Downtown LA held steady at 8.8%, according to CBRE’s latest quarterly report. There is 1.5 msf of retail space under construction in Greater LA, with approximately half to be completed by year-end. Active tenant categories, including those in fitness, furniture, food, fashion, and fun, will remain the dominant drivers in the region due to their ability to cater to a consumer base that desires experiences.
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