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LOS ANGELES, CA

Rebirth of L.A.’s Boyle Heights Gets Boost with Sale of Landmark Historic Sears Site

Jones Lang LaSalle closes $29 million sale, paving the way for redevelopment of historic site


LOS ANGELES, Dec. 3, 2013  — Jones Lang LaSalle’s Capital Markets land experts today announced the sale of a landmark property in Los Angeles’ Boyle Heights neighborhood: the nine-story, Art Deco building that once housed a Sears mail-order distribution center and remains the home of one of the retailer’s most successful stores. MJW Investments sold the site, located at the intersection of Olympic Boulevard and Soto Street, for $29 million. The buyer plans to redevelop the 1.8-million-square-foot building, which has been mostly vacant since the early 1990s, to include creative-class office space and for-rent residential units. The buyer also intends to develop retail space on the site’s outlying parcels.

Executive Vice President Jeff Adkison, Senior Vice President Brendan McArthur and Executive Vice President Paul Sablock led the Jones Lang LaSalle (JLL) team in the transaction.

“This is a historic site that represents a tremendous redevelopment opportunity, with its proximity to a revitalized Downtown Los Angeles that has emerged into a vibrant 24-hour, live-work-play environment in recent years,” Adkison said. “Boyle Heights is one of the most vibrant neighborhoods in Los Angeles, and this sale and subsequent redevelopment should play a big role in this neighborhood’s continuing rebirth.  The upper floors of the building offer some of the most stunning views of Downtown.”

The Art Deco building, completed in 1927, is on the National Register of Historic Places. Sears closed the distribution component of the structure in 1992, but a 185,000-square-foot Sears store remains in operation on the building’s ground floor. The site, covering some 23 acres, also includes a 48,000-square-foot warehouse and a 15,000-square-foot Sears Auto Store.

The site at Olympic and Soto benefits from close access to the freeways converging Downtown as well as bus, light-rail and subway lines. Furthermore, the revitalization of Downtown Los Angeles has directly spurred new development in Boyle Heights, as Downtown has experienced a 15 percent increase in its population since 2008. The Olympic and Soto site also is located within a federal Empowerment Zone and a state Enterprise Zone, both of which provide numerous incentives and subsidies to businesses that invest in the area and create jobs.

The sale of the Sears site is part of an impressive array of transactions that Adkison and McArthur have closed within the past year. Other sales include:

  • a 5,500-acre resort development in Park City, Utah.
  • a 150 acre mixed-use development ssite in Fremont, California, on behalf of Cisco Systems.
  • a 10-acre retail site in Gilroy, California.
  • a 24-acre office campus development parcel adjacent to Los Angeles International Airport.
  • a 23-acre hotel residential development parcel in Rancho Mirage, California.
  • a 22-acre industrial development site in Azusa, California, on behalf of Shell Corporation.

Jones Lang LaSalle Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2012 alone, Jones Lang LaSalle Capital Markets completed $63 billion in investment sale and debt and equity transactions globally. The firm’s dealmakers completed $60 billion in global investment sales and buy-side transactions, equating to nearly $240 million of investment trades completed every working day around the globe. The firm’s Capital Markets team comprises more than 1,300 specialists, operating all over the globe.

For more news, videos and research resources on Jones Lang LaSalle, please visit the firm’s U.S. media center Web page: http://bit.ly/18P2tkv.

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.7 billion of real estate assets under management. For further information, visit www.jll.com.