LOS ANGELES-MJW Investments has sold the nine-story Sears Art Deco building in Boyle Heights to a private investor for $29 million. The building formerly served as Sears department store's mail-order distribution center, and now is a Sears retail location. According to industry sources, the buyer is Izek Shomof.
The property is listed on the National Register of Historic Places. It was built in 1927, and is located on the corner of Olympic and Soto. Although Sears still occupies 185,000 square feet on the ground floor, the 1.8 million-square-foot building has remained mostly vacant since Sears' mail-order distribution center closed in the 1990s. Set on 23 acres, the site includes a 48,000-square-foot warehouse and a 15,000-square-foot Sears Auto Store.
“The property represents one of the largest redevelopment opportunities in the City of Los Angeles,” Brendan McArthur, SVP at Jones Lang LaSalle, tells GlobeSt.com. McArthur, along with JLL EVPs Jeff Adkison and Paul Sablockrepresented the seller in the transaction. “The historic site is in immediate proximity to a vibrant downtown Los Angeles, which has transformed into a 24-hour, live-work-play environment in recent years.” Adkison adds, “The upper floors of the building offer some of the most stunning views of downtown.”
The buyer plans to redevelop the historic site into a mixed-use development with creative office space, residential units and retail space on the outer edge of the property. In addition to the property's historic quality, it is also located in the growing Boyle Heights submarket with ample public transportation, including light rail and subway stations. The property is situated within a federal Empowerment Zone and a state Enterprise Zone, which were created to spur investor interest by offering subsidies to businesses that invest in the revitalization of the neighborhood. “The existing neighborhood of Boyle Heights is poised for a rebirth and the Sears property will play a prominent role in the area's transformation,” says McArthur.
Slowly, the submarket has made progress toward rebirth. Earlier this year, the Linda Vista Community Hospital was redeveloped in to a low-income, senior citizens housing center, Linda Vista Senior Apartments. The complex offers 120 affordable units to seniors with a household income 30% to 60% of the median L.A. household income.
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Kelsi Maree Borland
