340-354 S. Spring Street, Los Angeles, CA 90013

PROJECT DESCRIPTION

The Hellman building is an existing 9-story Class C office building in the Old Bank District of Downtown Los Angeles. At the time of sale the major tenant (CRA) had moved out of the building leaving it approximately 82% vacant and in need of repositioning.

Our listing team prepared an offering for the current ownership to target developers willing to pursue adaptive reuse concepts made possible by the existing adaptive reuse ordinance available to developers in Downtown Los Angeles. We identified a local developer with experience both in market rate and subsidized projects willing to close in short order, above asking price.

ASG Real Estate ROLE

The ASG Real Estate Team and JV partner Vista Advisors acted as both listing and selling brokers on the transaction. This transaction was consummated in early 2012 at a time when lenders were cautious and conservative underwriting new residential projects. As such we prepared development and marketing plans for three categories of buyers/developers: multifamily residential, creative office, and owner/user.  

PROJECT OUTCOME

A local housing developer successfully closed this deal mid 2012 utilizing a combination of private equity, seller financing and a bridge loan.

The developer completed the entitlement phase for a 191-unit market rate housing project with ground floor retail in 2016. They began construction in early 2017 setting a completion date for early 2018.