LOS ANGELES - Lincoln Property Co. has acquired the Desmond, a 78,500 square-foot, five-story downtown building, for $16.25 million in an all-cash deal.
Located in the South Park neighborhood of downtown Los Angeles, just two blocks east of Staples Center and the L.A. Live restaurant/entertainment complex, the building will be targeted for creative office, retail and restaurant space at over $3 per square foot in a triple net lease. Marc Renard of Cushman & Wakefield represented Lincoln Property Co. in the transaction.
The building was formerly owned by Meruelo Maddox Properties. After a bankruptcy reorganization, they emerged as EVOQ Properties. EVOQ took the property to market, but an owner-user had the building under contract. That contract fell out, and Lincoln was able to purchase the building. It is currently vacant.
The Desmond, which dates to 1917, was formerly a car dealership and later a furniture company warehouse. Lincoln is exploring keeping the existing car transport elevator in the building, according to David Binswanger, EVP at Lincoln. “We would like to maintain it,” he tells GlobeSt.com. “We think it's a very cool, historic feature and has a lot of different opportunities,” mentioning transport to a potential rooftop restaurant as one possibility.
Rob Kane, VP at Lincoln, says the company plans to spend approximately $9.5 million on base building infrastructure, and “another $9 million on tenant improvement infrastructure.” An adjacent surface parking lot was included in the deal and will be expanded to accommodate 65 cars, Kane added.
The Desmond has 16-foot high ceilings, with 11-foot high ceilings on the upper floors. The building also features 15,600 square-foot floor plates. Renovation plans include updating building mechanicals, replacing windows and upgrading interior finishes. Leasing efforts have already started and construction is anticipated to last a year. Lincoln has targeted mid-2014 for tenants to move in.
The SouthPark neighborhood includes the Fashion Institute of Design and Merchandising, Grand Hope Park and a residential community. There are over 30 restaurants, night clubs and entertainment venues within a five-minute walk of The Desmond. The building is also near the Harbor and Santa Monica freeways, the Los Angeles Metro rail system and the Downtown Dash Bus.
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