CBRE, which represented the seller and the buyer, 4D Development & Investment, announced the sale today.
The building has tenants renting about 20,000 square feet of the available space now, which “allows the new owner to maintain an income stream while seeking entitlements and permits for a mid-rise mixed-use project,” a release from CBRE says.
4D has another property nearby, the E. on Grand, which opened in 2017 at Pico and Grand, and has projects in the works close to the Vermont/Beverly Red Line station in East Hollywood and in West Adams, near Redondo Boulevard.
The property at 1201 South Los Angeles Street already qualifies for certain incentives through the transit-oriented communities guidelines that would allow a developer to build a denser project if affordable housing were included.
But, CBRE notes, the site is also “within an area of the DTLA 2040 plan, allowing for increased density and height.” The plan, which would guide development in the Downtown area, would pave the way for building tens of thousands of units of new housing. The plan available for public feedback now.
CBRE says the seller was a family that has owned the property for decades but had no desire to develop it themselves.
The Fashion District is already busy with redevelopment, most notably with the redevelopment of the Southern California Flower Market, which will add a 15-story building with 323 residential units, office space, and event space to the site.