Just a few weeks ago, the real estate grapevine produced word that the high-end, private SoHo House club will be opening its second Los Angeles location in an Arts District warehouse (and booting out musicians who use the space for rehearsing and recording), and already the fancy club is attracting new development nearby. Like, really nearby. The LA Business Journal reports that Bay Capital Fund, an LLC based in LA, bought the two-acre parking lot directly to the east of the future SoHo House, which bears the name of popular towing company Viertel's. As if that doesn't tell you enough about the hypergentrifying Arts District right now, it's also a block away from the warehouse where they're trying to work out the Hyperloop, a fictional form of transportation dreamed up by Tesla head Elon Musk.
The Viertel Family Trust sold the lot to Bay Capital for $11.5 million. A broker who represented the buyers says that there aren't any plans yet for the site, but that the new owners are weighing their options and considering retail, restaurant, or "hospitality" (a hotel??), but haven't made any final decisions. Explaining the draw of this site for his clients, the broker explains, "There were rumors swirling around that Soho House was looking for property in the general vicinity," going on to say that the property "looked like an excellent way to be a part of an emerging area."
It's taken a while for the industrial Arts District to transform into a kind of yuppie Disneyland, but its expansion south, beyond the traditional border of the AD (Seventh Street) has shot out of the gate with this one-two punch of clustered development. Though the Bay Capital project is still in the early stages, if it was drawn in by the anticipated presence of a SoHo House, it's fair to guess it's going to be squarely aimed at the type of people who might belong to a club that costs up to $2,800 a year.
· Geffen Sells Second Malibu Site to Mani Bros. [LABJ]
· Arts District Artists Surprised to Find Out They're Getting Evicted For a SoHo House [Curbed LA]
· New Arts District SoHo House Will Replace Actual Artists [Curbed LA]
· SoHo House Coming to the Arts District, Bringing Rooftop Pool [Curbed LA]
· Mapping the Arts District's Unstoppable Wave of Fancification [Curbed LA]