Realm Group acquires high rise multifamily development site in downtown LA
Realm Group, a joint venture between Realm Estate and The Bascom Group has acquired a 1.7-acre parcel of land in the Fashion District of Downtown Los Angeles for USD24,250,000.
The site is entitled and planned for the development of a 33-story, 452-unit high rise multifamily community, the first tower to be built in the emerging Fashion District. HFF’s capital team, led by Charles Halladay, Andrew Hornblower, and Jamie Kline, secured a land loan from Ladder Capital for the acquisition of the site. HFF continues to represent the project’s vertical construction financing.
Realm Group rezoned and entitled the existing parking lot, located at the corner of 7th Street and Maple Avenue, to approve the high-rise development, including 13,600 square feet of ground floor commercial space. The modern, concrete, steel and glass tower with a bold loft style design will feature a rooftop lounge providing striking city skyline views and 1-acre amenity deck at the 6th floor with a pool terrace and oversized dog park.
With its co-development partner, Urban Offerings, the mixed-use development represents a series of redevelopment projects recently announced and underway in the burgeoning Fashion District, spanning adaptive reuse creative office, food hall and street-level retail improvements. The project’s Downtown Los Angeles location capitalises on the expanding job and cultural base complemented by its 7th Street connection from the Historic Core to the Arts District and proximity to major transportation arteries.
The project is also located in the newly created Opportunity Zone and has been established as a qualified Opportunity Fund – a privately managed investment vehicle organised as a corporation or a partnership for the purpose of investing in qualified Opportunity Zone property. The Opportunity Zones program was recently established by Congress in the Tax Cut and Jobs Act as an innovative approach to spurring long-term private sector investments in urban and rural communities nationwide. The program is based on the bipartisan Investing in Opportunity Act. The program establishes a mechanism that enables investors with capital gains tax liabilities across the country to receive favorable tax treatment for investing in Opportunity Funds that are certified by the U.S. Treasury Department. The Opportunity Funds use the capital invested to make equity investments in businesses and real estate in Opportunity Zones designated by each state.
Darrin Olson, principal of Realm Group, says: “The Fashion District Tower builds upon Downtown Los Angeles’ ongoing successful revitalization in a city facing a housing crunch. Additionally, the Fashion District has an eclectic appeal with its base of creative design and media professionals and flourishing arts, culinary and fashion-related businesses, all transcending into desirable residential living.” Todd Caldwell, Development Manager of Realm Group, adds “We are excited to receive the entitlements and close on the site and begin the next phase of development. The location not only is located in the highly desirable and emerging Fashion District but will offer panoramic views of the Downtown Los Angeles skyline. The Opportunity Fund qualification is an added bonus.”
Realm Group has another high-rise development in the works in Downtown Los Angeles that will consist of a 36-story, 422-unit multifamily tower. That project is located in the rapidly developing Downtown Los Angeles area west of the 110 Freeway known as City West.