A major stake in the California Market Center has been purchased by Brookfield, a New York-based office landlord that already owns a significant amount of office space in Downtown.
The price of taking over the fashion mart, a mainstay of the Fashion District that’s long housed industry tenants, was close to $440 million, the Los Angeles Times reports. Current owners Jamison paid $135 million for CMC back in 2004, says the Times.
According to a release from Brookfield, the company plans to “significantly invest in and transform” the four-building complex at Ninth and Main streets into creative, mixed-use office space.
“We want to open it up literally and figuratively to the street and to pedestrian flow, to invite people into space that is somewhat blocked off and difficult to access now,” Bert Dezzutti, Western Region Executive Vice President for Brookfield Office Properties, told the Times.
Measuring 1.8 million square feet, the CMC complex is the largest wholesale mart in the region, but it’s only about half leased, says the Times.
Brookfield states that the reboot of CMC will be aimed at gaining more tenants from the complex’s existing fashion industry base while also attracting new clients who are looking for a non-traditional office space.
“We are excited to usher this storied business center into a new era, reflective of the recent success of the surrounding neighborhood,” said Dezzutti.
That recent success probably refers to the slew of projects in the works in the A 33-story tower and hundreds of new apartments have been proposed for the neighborhood, and adaptive reuse projects are turning commercial buildings into offices and housing.