LOS ANGELES-Those who follow @GlobeStcom on Twitter may have seen a post teasing the announcement a few days ago, but GlobeSt.com has learned that the redevelopment project known as Marlton Square here in South Los Angeles is set to move forward with phase one following the purchase of 8.65 acres of land by Kaiser Permanente, which plans to develop two medical office buildings at the site. In addition, the seller, Commercial Mortgage Managers, is also in negotiations with potential developers of a 120,000-square-foot retail center on the balance of the 22-acre property.
Although GlobeSt.com could not obtain the full price of the redevelopment from sources involved, we did learn from an unidentified source that the price is just around $40 per square foot. The site is bounded by Martin Luther King Jr. Boulevard Marlton Avenue, Buckingham Road, and Santa Rosalia Drive; and is adjacent to the Baldwin Hills Crenshaw Mall.
Marlton Square had been part of a $1-billion real estate portfolio that defaulted when USA Capital, the lender, filed for bankruptcy in 2006. As part of ensuing legal complexities, a court-ordered ‘stay’ was placed on the assets; this halted redevelopment plans. In 2010, the US Federal Court trustee came up with a plan that would allow each property to move forward separately. CMM, the primary investor in Marlton Square, secured the title in August of 2010 and immediately began the work of preparing it for sale. Kaiser was among several potential buyers to express an early interest in the site.
This is a significant turning point for the future of this community, says David Rentz of CMM, in a prepared statement. “This property has been at the core of redevelopment discussions in South Los Angeles for a number of years. Kaiser’s development of two medical office buildings at the site sends a strong message that this community is vital, and that there is great value in this property and location.”
All structures on the future Kaiser site have now been demolished, and Kaiser is scheduled to break ground next month on its medical office buildings. The remaining unoccupied buildings will be demolished within the next few months. “Kaiser’s commitment to this community and this project is the lynchpin that will help us finally revive the vision for Marlton Square that had been dormant for so many years,” explains Rentz. “The interest level on the retail site has been incredible and we expect to select a buyer for that portion of the project in the very near future.”
CBRE’s Jamie Brooks, Dean Haney and David Stromath represented the seller in the Kaiser transaction, and are also representing them in the active retail negotiations.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
