Off-market deal culminates in the approx. $70M sale of Santa Fe Lofts to MWest Holdings, an existing 132-unit multifamily building with ground floor retail, located in the northern end of the Old Bank District
LOS ANGELES, Ca., April 2, 2018 – Cushman & Wakefield has announced the nearly $70M sale of Santa Fe Lofts, an existing 133 unit multifamily building with ground floor retail, located at 560 S Main St, 121 E. 6th St in Downtown Los Angeles and covering 213,560 SF.
The buyer, MWest Holdings, is a Los Angeles-based real estate and investment firm with over two million square feet of residential and commercial property across the U.S., and specializes in restoring classic properties that showcase historical architecture to build a sense of neighborhood, and revitalize community aesthetics and culture.
Executive Managing Director, Mike Condon Jr., Senior Associate, Kelli Snyder, and Associate, Brianna Demus, brokered the transaction between the buyer, MWest Holdings, and the seller, Capital Foresight.
Mr. Condon said the sale is especially significant as Santa Fe Lofts is one of the largest multifamily adaptive reuse deals to sell since 2012 and is one of the five largest adaptive reuse multifamily projects in all of Downtown Los Angeles. With the addition of Santa Fe Lofts, MWest Holdings totals three adaptive reuse projects in Downton Los Angeles, and now ten historic buildings in the Los Angeles area.
“This type of sale in Downtown LA is rare; only 20 sales of this property type have been recorded in the area in the past 17 years. The sale points to the broader gentrification of a number of DTLA submarkets such as the Arts District, Jewelry District, Chinatown and most specifically in the Old Bank District,” he said.
According to Cushman & Wakefield, MWest Holdings plans to renovate and upgrade the building, but will keep it as a mixed-use project with multifamily and retail.
“The intent of the buyer, MWest Holdings, is to take the wonderful upgrades that the seller has already implemented at Santa Fe Lofts, with items such as mechanical upgrades and rooftop amenity space, and take it a step further to make this a truly Class A adaptive reuse project,” Mr. Condon said.
Ms. Snyder said the sale showed a continued path of investment dollars in and around the northern end of the Old Bank District. “It’s an exciting place to be right now, maybe one of the most enticing pockets in all of Downtown LA,” said Ms. Snyder.
“Institutional investment in this area that just a few years ago was still considered transitional, further proves that the Old Bank District has achieved a level of gentrification that will only continue to bolster large scale investment in the submarket,” added Ms. Demus.
“With recent area announcements on Cushman & Wakefield brokered deals such as the new citizen hotel, the Rising / Lionstone redevelopment of the Title Insurance building to creative office, and now a significant acquisition on the Santa Fe Lofts to increase residents living experiences, it is safe to say that positive gentrification has happened in this pocket of the Old Bank District and we expect to see exponential growth going forward.”
“I expect that continued investment activity and activation of dark space will lead to a much more seamless connection and feeling of safety between other submarkets such as Little Tokyo, further making Downtown a truly remarkable place to live and work,” Mr. Condon added.
“It’s the perfect opportunity for people to switch their cars for their walking shoes and move to a place like Santa Fe Lofts, as there are very few places in the world where this kind of living can be achievable.”