Redevelopment opportunity sold in high-growth LA market
JLL Capital Markets closed the $2.9M sale of a covered land play with an existing storefront retail building in Koreatown
NEWPORT BEACH, Calif., March 29, 2021 – JLL Capital Markets announced today that it has closed the $2.9 million sale of a covered land play consisting of a 3,600-square-foot value-add retail building with future development potential in the heart of Koreatown, one of the most active and emerging neighborhoods in Los Angeles, California.
Completed in 1920, the one-story building is currently fully leased to Ace Hardware on a month-to-month basis, providing the new owner with an income stream while they go through the re-entitlement process with the city. Based on current zoning, the new owner could eventually redevelop the property into a multi-housing asset with between 23 and 41 units, depending on if they take advantage of Los Angeles’ Transit Oriented Communities (TOC) program that would allow for a larger unit count.
The property consists of 0.21 acres at 513 Western Ave. on the southwest corner of West 5th Street and South Western Avenue just north of Wilshire Boulevard in Koreatown, one of the most impressive growth submarkets in Los Angeles. This central Los Angeles location puts the site between Downtown LA, Hollywood, Miracle Mile and Hancock Park, making it ideal for retail or multi-housing uses. Additionally, the property has near immediate access to the Purple Line’s Wilshire / Western Station and is 2.8 miles from both the 101 and Interstate 10, providing quick, convenient and affordable access to the majority of Los Angeles’ robust employment and cultural hubs.
“The ACE Hardware investment offering was a unique opportunity to acquire a single-tenant storefront retail building at a below market rent,” Friedlander said. “In addition, the ACE Hardware lease was month to month.
“Opportunistic buyers were attracted to the property and understood the future development potential of the site,” he added. “Dense, in-fill locations of Los Angeles continue to be highly sought after by developers looking to redevelop commercial properties into its highest and best use.”
JLL 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 investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of more than 91,000 as of December 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.