A rendering of 718 S. Hill Street

LOS ANGELES, December 18, 2017 – 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, a real estate development company based in Los Angeles, sold the historic site to investment firm Bow West Capital for $14 million.

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 at $8.54 million 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 converted all tenants to month-to-month leases, received approvals for a type 47 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. The huge uptick on pricing to $14 million in this short period of time is a testament to the seller’s efforts to deliver a near turnkey project. 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.

Condon, Jr. previously represented Uncommon Developers in the acquisition of 718 South Hill Street in February 2015. The firm paid $8.54 million for the property at that time.

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 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.