{"id":8992,"date":"2025-03-03T10:54:57","date_gmt":"2025-03-03T18:54:57","guid":{"rendered":"https:\/\/citystuff.com\/los-angeles\/?p=8992"},"modified":"2025-03-03T10:54:57","modified_gmt":"2025-03-03T18:54:57","slug":"under-trump-la-federal-buildings-at-risk-of-being-sold-off","status":"publish","type":"post","link":"https:\/\/citystuff.com\/los-angeles\/under-trump-la-federal-buildings-at-risk-of-being-sold-off\/","title":{"rendered":"Under Trump, LA federal buildings at risk of being sold off"},"content":{"rendered":"

Under Trump, LA Federal Buildings at Risk of Being Sold Off<\/h1>\n

Government’s Plan to Sell Off Dated, Empty Federal Properties<\/h2>\n

The Trump administration is reportedly weighing the sale of two-thirds of the government’s office stock to the private sector, part of the administration’s major downsizing efforts to reduce government spending.<\/p>\n

LA’s Seven Federal Properties at Risk<\/h2>\n

The city of Los Angeles has seven federal properties, including four downtown LA courthouses, a parking facility, and two office buildings. These properties are managed by the U.S. General Services Administration (GSA), which is responsible for overseeing the government’s real estate.<\/p>\n

Courthouses on the Block<\/h3>\n

The GSA is reviewing options to optimize its footprint and building utilization, which may include selling off some of the courthouses. However, Trump and his billionaire sidekick Elon Musk have stated that they do not plan to get rid of courthouses.<\/p>\n

Spring Street Courthouse: A Tough Sell<\/h4>\n

According to Aleks Trifunovic, president of Lee & Associates in West Los Angeles, the Spring Street Courthouse is "for all intents and purposes \u2014 f****d." The building is dated and has a niche use, making it difficult to sell. Trifunovic suggests that the property would be best used as office space, but it would be a tough sell at a price of $250 per square foot.<\/p>\n

Other Properties at Risk<\/h4>\n

The 53,000-square-foot parking garage at 1260 South Sepulveda Boulevard in West LA is a good candidate for conversion into a senior-living facility or traditional multifamily property. The 46,000-square-foot 1340 West 6th Street building, home to the Los Angeles High Intensity Drug Trafficking Area (LA HIDTA), could be incorporated into a massive mixed-use transit-served project.<\/p>\n

Historic 11000 Wilshire Building: A Potential Gem<\/h5>\n

The 17-story Wilshire Federal Building at 11000 Wilshire Boulevard sits on over 30 acres of mostly surface parking. According to Carl Muhlstein of Muhlstein CRE, the property could be easily incorporated into a massive mixed-use transit-served project, potentially worth $500 million to over $1 billion.<\/p>\n

Successful Sales and Conversions of Federal Properties<\/h2>\n

There are examples of successful sales and conversions of federal properties in the past. In November, Long Beach-based Hilco Development Services acquired the Chet Holifield Federal Building in Orange County, California, with a $177 million auction bid. The Federal Aviation Administration’s longtime West Coast headquarters near Los Angeles International Airport commanded $37.3 million in a 2019 auction.<\/p>\n

Conclusion<\/h3>\n

The sale of LA’s federal properties would be a complex transaction, but there are examples of successful sales and conversions in the past. The GSA is reviewing options to optimize its footprint and building utilization, which may include selling off some of the courthouses. However, the outcome is far from certain, and the fate of LA’s federal properties remains to be seen.<\/p>\n

FAQs<\/h4>\n