Introduction to Downtown Development
The sky is the limit for a 2.3-acre open patch of the downtown Los Angeles entertainment district. That is provided someone buys the billing behind the $100 million listing that just hit the market, The Real Deal has learned.
The sky-high price speaks for itself: the biggest ask for land in the city’s center in recent years at around $43 million an acre.
Site Details and Opportunities
The scale of the opportunity is outlined by Douglas Elliman’s Bassick Real Estate Advisors division, with Catherine Bassick holding the private listing. Sales materials reviewed by The Real Deal plug the site as entitled to accommodate a “skyline-defining landmark.” The land owned by nonprofit Salvation Army spans 832 and 900 James M. Wood Boulevard and 916 and 927 Francisco Street, plus an additional commercial parcel nearby. (9th Street is known as James M. Wood Boulevard for a stretch from the Westlake District to downtown).
Sales materials refer to it as a mixed-use development opportunity, and claims it is “one of the last large-scale assemblages in DTLA’s core.”
Development Potential
There is no height limit, according to the brochure, which lists 1.3 million square feet of developable land. The space is about a block away from LA Live, two Marriott-branded hotels and the Grammy Museum, with the Los Angeles Convention Center several blocks further south.
832 James M. Wood Boulevard was the Salvation Army Zahn Memorial Center, an emergency shelter for families. The parcels that make up the site create three connecting plots owned by Salvation Army, which has a campus in Long Beach now.
The material includes development scenarios such as a mixed-use residential tower with a retail space at the ground level and rooftop amenities, or a hotel or a creative campus for corporate headquarters.
Market Conditions
Downtown offices still have an about 33 percent vacancy rate despite the recent return to work. A lot of employers are choosing places such as Century City — which is considered more desirable because the offices are newer, full of amenities and homelessness isn’t much of an issue, to entice their workers back to their desks. Apartments are better off, but still have a higher vacancy rate downtown than all of Los Angeles. Hotels are seeing challenges due to a difficult economic and regulatory environment, but the World Cup and Olympics are coming soon.
Related News
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Salvation Army at work on 190K sf “Center of Hope” in Anaheim
Salvation Army sells Long Beach office tower for $36M
Conclusion
The $100 million listing for the 2.3-acre downtown Los Angeles development site represents a significant opportunity for investors and developers. With its prime location, lack of height restrictions, and potential for mixed-use development, this site has the potential to become a landmark in the city. However, market conditions and the current economic environment must be carefully considered by potential buyers.
FAQs
Q: How much is the downtown Los Angeles development site listed for?
A: The site is listed for $100 million.
Q: How large is the development site?
A: The site spans 2.3 acres.
Q: What is the potential development opportunity for the site?
A: The site is entitled for mixed-use development and has the potential to accommodate a “skyline-defining landmark.”
Q: What are the current market conditions for downtown Los Angeles offices and apartments?
A: Downtown offices have a 33 percent vacancy rate, while apartments have a higher vacancy rate than the rest of Los Angeles.
Q: What upcoming events may impact the hotel industry in downtown Los Angeles?
A: The World Cup and Olympics are scheduled to take place soon, which may bring challenges and opportunities for the hotel industry.
