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7/14/21
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A 20.3k sf redevelopment site on the northeast corner of Pico and Sepulveda in West Los Angeles was purchased by a partnership between HATCHspaces LLC, a life sciences developer focused on creating workspaces for STEAM-based companies emerging from research environments and NexCore Group, the nation’s leading developer of healthcare properties. No price was given.
“The transaction is one of the first sales of a redevelopment site under the purview of the recently approved Exposition Corridor Transit Neighborhood Plan,” said Paul Darrow, a partner with THG Multifamily Advisors of Marcus & Millichap. “While the new plan and site zoning opened up an array of uses that certainly weren’t available previously, challenges remain. New mixed-use requirements that include minimum ratios of uses, floor-to-area ratio bonuses, and other design specifications made understanding the site’s highest and best use extremely challenging.”
“We’ve been brokering in Los Angeles for 17 plus years and had a general idea of what the buyer pool might look like for a site like this, but we were surprised to see how many extremely well-capitalized companies in the science, technology, engineering, arts, and mathematics education sector (STEAM) demonstrated their interest,” Darrow added. “It’s a versatile development site with vast potential and we are glad to see the City of Los Angeles paving the way for such development and hope the city continues to look for more ways to support much-needed development.”
Darrow and Kevin Green, senior managing director of Institutional Property Advisors (IPA), a division of Marcus & Millichap, represented the seller, a family trust and procured the buyer in the transaction.
“The development community recognized the extraordinal potential of a STEAM-oriented site close to Google’s new 500,000- square-foot campus, and UCLA’s expanding base of world-class talent. Next door to the property, a 43-unit cloud kitchen concept is being developed under the new plan,” noted Green. “The city wanted to change this area into a neighborhood of innovation and progress and it’s happening. Without question, once the city provides the right framework for business growth, the innovators are ready to begin work.”
Set into law in 2019 and aimed at fostering higher-density multifamily, office, industrial and retail around the Los Angeles Metro’s A Line’s transit path, the Exposition Corridor Transit Neighborhood Plan designated nine subdistricts, each with their own development focus, and guidelines. The Pico and Sepulveda area is located in the new industry subdistrict.
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