A rendering of 718 S. Hill Street
Cushman & Wakefield Reps Seller in Disposition with Uncommon Developers
LOS ANGELES, March 6, 2018 – Cushman & Wakefield announced today the sale of 718 S. Hill Street, a 54,910 square foot (47,288 square feet above-grade) commercial building in the heart of the Jewelry District in Downtown Los Angeles. Uncommon Developers, an LA-based real estate and neighborhood transformation development company, sold the historic site to investment firm Bow West Capital.
Brokerage professionals Mike Condon, Jr., Kelli Snyder, Brianna Demus, and Arianna Nienow from Cushman & Wakefield’s Los Angeles office acted as exclusive advisor to the seller in the transaction. Bow West Capital was represented by Andrew Sinasohn and Jake Zacuto of the Zacuto Group.
“It was a very unusual situation, given ownership acquired the building two-and-a-half years ago to implement their own creative office renovation,” said Executive Managing Director Mike Condon, Jr., who specializes in the leasing and sale of properties in the Historic Core. “The seller maintained all tenants on month-to-month leases, received approvals for a type 47 conditional-use-beverage permit (CUB), and began base-building improvements to get much of the building to a white box condition to commence lease-up. The opportunity actually began as a two-floor lease opportunity and transitioned into an acquisition with the help of an interrelated investment group with the buyer.”
He added: “This sale demonstrates the value of demystifying a very difficult renovation process for historical assets. It gave the buyer ability to take much of the guess work out of the future renovation and provided a competitive speed to market process versus several other competitive projects in the Historic Core. This sale is also significant because 718 South Hill is another traditionally-located Jewelry District building that is going for conversion for something other than jewelry-type tenants. As jewelry retail sales in the area decline, the neighborhood is proving ripe for redevelopment of these buildings into creative office, retail, boutique hotels, and multifamily.”
The property, built in 1913 and comprised of 718, 720, and 722 South Hill Street, is located between Seventh and Eighth and one block west of South Broadway. Situated in the Historic Core, the neighborhood has become ripe for redevelopment through the addition of the Los Angeles Streetcar, the revitalization of nearby Pershing Square, and the Bringing Back Broadway initiative aimed at reactivating Downtown’s historic stretch of theaters and commercial space.
“Our initial concept was to take the jewelry business space and transform it into creative offices and retail on the ground floor,” said Ryan Hekmat, Uncommon co-managing principal. “We were able to secure a CUB permit on the ground floor, pushed through with engineering and design to create a near permit-ready condition for the offices above, and operated at a 90 percent occupancy with interim month-to-month tenants.”
“This project exemplifies the type of development Uncommon is known for,” says Jason Larian, Uncommon co-managing principal. “Our specialty is transformation – repurposing a space to be more than just its basic intended use. In this project, for example, we’re looking to make the space more than just a workplace. We are designing more productive, inspirational and collaborative spaces that people want to come work in. And while the presence of the jewelry district will be missed, we are proud to turn them into spaces that improve the quality of life for the Los Angeles community.”
As for the 718 S. Hill Street’s future redevelopment plans, President Sean Beddoe of Bow West Capital said, “We will be starting immediately and turning it back into offices, with creative office on floors seven through three, putting in an art gallery on the mezzanine, and we’re working with a couple of restaurant groups for the retail space on the first floor.”
About Uncommon Developers
Uncommon Developers is a real estate development company based in Los Angeles that strives to develop projects that transform neighborhoods, communities, and day-to-day lives. Uncommon believes that real estate isn’t just about property. It’s about creating spaces for people to connect, live more harmoniously, work more productively, and improve quality of life. Along with the team’s decades of experience, Uncommon believes this bold focus allows it to create long-term value for all stakeholders. Visit the website to learn more about Uncommon.
About Bow West Capital
Bow West Capital is a private real estate investment firm located in LA, California specializing in office & industrial redevelopments. Bow West Capital targets assets in need of a capital injection with underutilized uses, we invest for the long term, creating unique office space in areas with strong development fundamentals. Bow West Capital aims to breathe new life into tired real estate, unlocking value through the change of use. We focus on providing creative office tenants a turnkey working environment alongside unique design and construction, incorporating green building with sustainability and LEED best practices whenever possible. Visit www.bow-west.com for more information.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm with 45,000 employees in more than 70 countries helping occupiers and investors optimize the value of their real estate. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.