Los Angeles—In an off-market deal, real estate investment group TRG has acquired a 100-year-old apartment building near the planned Farmers’ Field in Downtown Los Angeles for $3.05 million. The company plans to redevelop the property as micro-loft units.
Micro-units are an up-and-coming trend in apartment design. Early this year, for example, the city of New York announced plans for 335 E. 27th St., an apartment whose distinctive feature is units as small as 250 square feet, though most are a bit larger. When completed in March 2014, the new Los Angeles property will feature 29 units with an average size of 600 square feet.
The three-story, 18,000 square-foot building is on Georgia Street, adjacent to a $200 million hotel and entertainment development for Marriott now under construction one block north of LA Live. TRG says it will invest an additional $1 million to reposition the building to attract professionals wanting to be in downtown Los Angeles, but who don’t need a lot of space. The building also will feature a gym, spa, business center, screening room, and rooftop deck.
The acquisition is the first in Los Angeles-based TRG’s plans to invest as much as $50 million in market-rate housing in downtown Los Angeles over the next 12 to 18 months. The firm is expecting to close on an additional 68 units in the neighborhood in the near future.
TRG was represented by in the deal by Concord Real Estate Services’ Guillermo Ma. Currently the investment firm has a portfolio of more than 600 multifamily units in Southern California.