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Jones Lang LaSalle closes on land deal that paves the way for more residential units in bustling market
LOS ANGELES, Jan. 2, 2014 — With Downtown Los Angeles in the midst of a major commercial and residential renaissance, Jones Lang LaSalle’s Capital Markets land experts today announced a closing that will further the area’s rebirth: the sale of two land parcels next to the iconic Herald Examiner Building. Forest City Enterprises purchased the 94,000-square-foot assemblage from Hearst Corporation and plans to develop two mixed-use properties featuring for-rent residential units and street-level retail. The land sale comes as Jones Lang LaSalle (JLL) continues to advise Hearst Corporation on its plans to redevelop the Herald Examiner Building, which was built in 1914 and is listed on the National Register of Historic Places. The building housed the offices of Hearst’s Los Angeles Herald Examiner until the paper closed in 1989.
Executive Vice President Jeff Adkison, Managing Director Mike McRoskey and Vice President Rob McRitchie are leading the firm’s efforts on behalf of the Hearst Corporation.
“This is one of the most significant land sales in Downtown Los Angeles this year,” Adkison said. “Developers have been anxious to capitalize on the renewed interest and activity in the area, but there has been a limited supply of available sites for sale at price points that make sense. So when well-located sites like this have become available, the development community has bid aggressively.”
One of the parcels, which totals 46,220 square feet, is at the southeast corner of 11th and Hill Street, adjacent to the Herald Examiner Building. The other parcel consists of 47,916 square feet and is at the southeast corner of 12th and Broadway, half a block south of the building.
“With Forest City’s developments planned for the two parcels and Hearst’s redevelopment of the Herald Examiner Building located next to each other, this was a complex deal that required the two parties to work together to make sure their upcoming projects support and complement each other,” McRitchie said.
Downtown Los Angeles is clearly on the path to becoming a true 24-hour, live-work-play environment. The emergence of luxury residential, destination cultural museums, luxury hotels, sports venues and everyday amenities has energized the area and fueled a 15 percent increase in Downtown’s population since 2008. The average household income in Downtown was $85,500 in 2011, which is 17.9 percent above the U.S. average and 5.6 percent higher than the Los Angeles County average. Downtown also represents the most established office market in Southern California and is among the best performing submarkets in greater Los Angeles.
The sale of the Hearst land sites is part of an impressive array of transactions that JLL’s Development and Asset Strategy (DAS) experts in Los Angeles have closed within the past year. Other sales include:
• a 1.8 million-square-foot historic building near downtown Los Angeles.• a 5,50-acre resort development in Park City, Utah.• a 15-acre mixed-used development site in Fremont, California, on behalf of Cisco Systems.• a 10-acre retail site in Gilroy, California.• a 24-acre office campus development parcel in El Segundo, California.• a 23-acre hotel and residential development parcel in Rancho Mirage, California.• a 22-acre industrial development site in Azusa, California, on behalf of Shell Corporation.Furthermore, the team is currently selling:• a parking deck in downtown San Diego.• an industrial park in Phoenix.
“There is a tremendous amount of activity taking place in Los Angeles and throughout the West, and our clients are at the center of it all,” Adkison concluded.
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.
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