The Olson Co. Acquires LA Office Campus for Residential Conversion
The deal was valued at nearly $25 million.
The Olson Co. has acquired a two-building medical office campus in Monterey Park, Calif., from BH Properties in a $24.9 million deal. The two vacant medical office buildings, which total 120,191 square feet, will be razed in order for the developers to build Potrero Grande & Atlas, a residential community with 159 townhome units.
KTGY is the architect and design firm for the project, which is expected to deliver in 2028. The nearly 8-acre property is comprised of a three-story, 91,363-square-foot office building at 601 Potrero Grande Drive and a 28,828-square-foot building at 2100 Saturn St. The campus has a total of 508 surface parking spaces and is located near the 60, 91,710 and 605 Freeways.
Ryan Campbell, managing director of NAI Capital Commercial’s Investment Services Group, represented The Olson Co., a Seal Beach, Calif.-based company also known as Olson Homes, in the acquisition.
JLL Capital Markets Managing Director Andrew Harper, Senior Managing Director Jeff Bramson and Director Will Poulsen represented the seller.
Inside the conversion
Named after its two main cross streets, the development was approved by the Monterey Park City Council in June. Plans call for 159 attached townhomes with two-, three- and four-bedroom floorplans ranging in size from 1,100 to 2,000 square feet. Each home will include a two-car garage.
The project will include eight live-work units and eight very-low-income units for households earning 50 percent of Los Angeles County’s Area Median Income.
The gated community will have a large open space at the center of the property featuring a one-story cabana with a barbecue area to serve as a resident gathering and dining space, according to documents filed with the city of Monterey Park. The property will include a linear park, several walking paseos and other active and passive landscape amenities.
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KTGY is also working with Olson on an 80-unit residential project at 824 S. Gladys Ave. in San Gabriel, Calif., according to UrbanizeLA. The development will include a mix of one-, two-, three- and four-bedroom units. Four units will be for very-low-income households.
BH Properties had acquired the campus in May 2022 from Blue Shield of California in a $15 million sale-leaseback transaction. The deal called for Blue Shield to occupy both buildings through July 2023, while BH Properties considered plans to reposition the property.
