HACLA Pays $43M for Los Angeles Asset

Most of the property’s units will be converted to affordable housing.

Property at 349 S. Lafayette Park Place, Los Angeles
The LP by CLG rises three stories in the Mid Wilshire East submarket. Image courtesy of Colliers

The Housing Authority of the City of Los Angeles has purchased The LP by CLG, a 120-unit community in Los Angeles, from California Landmark Group. Colliers provided brokerage services.

HACLA intends to convert 90 of the property’s units to affordable housing, restricted to households earning at or below 80 percent of the area median income. No existing residents will be required to move and residents with qualifying incomes will be eligible to receive rent reductions.

The asset traded for $43.4 million. The purchase benefited from $19.5 million in federal Community Development Block Grant funding awarded by the City of Los Angeles through its Community Investment for Families Department.

In addition, the transaction was exempt from the ULA Transfer Tax, as HACLA is a public agency buyer. Last April, the tax went up from 0.45 percent to 4 percent for all commercial and residential properties trading for more than $5 million in Los Angeles, while assets selling for more than $10 million become subject to a 5.5 percent tax.

HACLA’s portfolio is north of 9,400 units across 109 properties, according to the U.S. Department of Energy. Its efforts to provide affordable housing include administering monthly assistance payments for more than 50,000 households throughout Los Angeles.

A remodeled community

Rising three stories, the community encompasses studio and one-bedroom floorplans of 700 and 775 square feet, respectively. Amenities feature stainless steel appliances, hardwood flooring with carpeting in bedrooms, as well as mini-split air conditioning and heaters.

The LP by CLG came online in 1971 and was remodeled in 2017, after California Landmark Group earmarked $4 million in capital expenditure. Renovations included a new roof, improved plumbing systems, upgrades to the swimming pool, the addition of a built-in barbecue area, refurbishments to the gym, as well as the introduction of EV charging stations.

Located at 349 S. Lafayette Park Place, the community is 2 miles south of U.S. Route 101 and north of Interstate 10. Likewise, downtown Los Angeles is 2 miles east. The Westlake MacArthur Park subway station is 1 mile away.

Colliers Senior Executive Vice President Kitty Wallace and Associate Vice President Kalli Knight brokered the sale.

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