Big Money Land Deal Paves Way for $750 Multifamily Development Project
By Alex Girda, Associate Editor
As far as land deals go, reports rarely come in about landmark transactions in a major city’s Central Business District. However, a joint venture between Mack Urban and AECOM Capital has recently made public the acquisition of a six-acre land parcel in L.A.’s CBD. The value of the deal is estimated at around $80 million, making it by far the largest transaction of its kind in the area since 2008. The JV acquired the downtown property from former owner, EVOQ Properties.
According to a recently released press statement, the new owners are now looking to develop “a portfolio of class A, institutional quality, highly amenitized multifamily residential developments,” part of their strategy for the entire West Coast. The Los Angeles move is a testament to Mack Urban’s commitment to their goal. With the development that would occupy the six-acre site currently in the design and planning stages, specifics regarding the size and unit haul of the upcoming multifamily are still unclear, however the Los Angeles Times writes that the total investment would come in at around $750 million. The towers are designed by architecture firm AC Martin Partners, and will be constructed by Tishman Construction Corporation, a wholly owned subsidiary of AECOM.
The location certainly offers the project extensive coverage, with the proximity of the AT&T Center providing serious exposure to the soon-to-be-built residential towers. Located in Los Angeles’ South Park, one of downtown’s premier residential neighborhoods, the site is also located just east of one of the primary reasons of the area’s rebirth, the Staples Center, and the massive L.A. Live entertainment district. The area has become one of the prime spots for young professionals and the surge in interest is reflected in the average rent rates according to a RCLCO report.
Image courtesy of Google Maps