LOS ANGELES-In what's believed to be the biggest US deal yet for a mainland Chinese developer, the Shanghai Greenland Group Co. has acquired a stake in a huge vacant downtown lot near L.A. Live.
The state-owned developer plans to invest $1 billion in a mixed-use project. The project site, known locally as the Metropolis site, is a six-acre, 275,450-square-foot parcel of land on 8th St. near the L.A. Live entertainment complex. The land is bordered by 8th and 9th streets, with the Harbor Freeway as its western boundary.
The percentage purchased by Shanghai and the sales price were not disclosed, but is likely well into nine figures. CBRE was the deal broker, but declined to comment.
The California State Teachers Retirement System (CalSTRS) and partner IDS Real Estate Group originally bought the land for $70 million. The site has been the object of local developer ardor for some time, but was finally shopped by the joint venture over the last few months. The land will likely need some remediation before construction begins, owing to its freeway proximity. CalSTRS is the second-largest US pension fund. Patrick Spillane, a SVP with IDS and spokesman for the joint venture, did not immediately respond to a call for comment.
The purchase by the Chinese developer continues the influx of foreign money into Los Angeles County, with the recent purchase of the US Bank Tower, Korean Air's construction plans for the former Wilshire Grand site, and the purchase of the Clock Tower in Santa Monica among the bigger deals of the last year.
Shanghai Greenland is currently building one of China's tallest towers, a skyscraper in Wuhan in central China. The firm could not immediately be reached for comment, but reports indicate construction on the L.A. Metropolis site may start within the next six months. The site is entitled for offices, retail, apartments and hotels.
“It shows the kind of money from overseas that the L.A. CRE market has been speculating about is finally starting to be deployed,” says Michael Soto, a research manager for Transwestern.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
