The Rowan Building, which stands at Fifth and Spring Streets, has been acquired by Gilmore Associates for $7 million. The redevelopment plan calls for 209 units, ranging in size from 450 sf to 1,200 sf. Twenty percent of the total project will be rented to low income tenants. When completed, the redeveloped complex will include a 600-car garage and ground-level retail space. Ground-breaking is slated for spring with completion scheduled for early 2002.

Los Angeles-based Gilmore Associates has already worked on several loft conversion projects in Downtown, including the $33-million Old Bank redevelopment project consisting of the Continental, Hellman and San Fernando buildings. Simpson Housing, however, is a virtual newcomer to this type of project. The company is known primarily for constructing new apartment complexes geared toward families and seniors. "When the economy begins to change and shows softness, more investors, lenders and developers begin to focus on infill markets," says Michael A. Costa, president of Simpson Housing.

The loft conversion movement gathered steam last year, after a study conducted by the Los Angeles Conservancy found that nearly 50 of the CBD's aging commercial structures could feasibly be converted to lofts and the LA City Council approved an ordinance making such conversions easier.