LOS ANGELES-ST Residential has sold 41,000 square feet of retail and office space on the ground floor in Solair, a 22-story, 186-unit luxury mixed-use condo complex in Koreatown. A private Los Angeles real estate owner purchased the space for an undisclosed amount.
“This iconic steel and glass structure is a true urban, infill investment property which garnered multiple competitive bids,” says CBRE senior associate Ben Cherney, who represented the seller in the transaction along with CBRE SVP Dan Riley and first VP Mark Hong. “In the end, the ultimate buyer distinguished themselves by offering a sizable non-refundable deposit upon the opening of escrow.”
Located at 3875 Wilshire Blvd., Solair is currently 44.5% leased. The 41,000 square feet purchased is located on the corner of Wilshire Boulevard and Western Avenue. Cherney believes that the prime location, in one of the nation's most densely populated areas, will “command strong tenant interest and strong rental rates.”
Due to the unusual nature of the building, with for-sale retail units that have a lease component, the transaction was challenging. “This was perhaps one of the most complex transactions we have been involved with in many years,” notes Cherney, adding that some of these challenges include a necessary modification of the MTA ground lease prior to close of the transaction, a timely completion of the buyer's 1031 exchange and modifications to a cost sharing arrangement between the HOA and retail. “Thankfully, despite all the challenges, all parties were able to work together to close in under 30 days from of opening of escrow,” he says.
Other investors have been interested in Koreatown. GlobeSt.com reported in an earlier story that the California Landmark Group allocated $75 million last year to multifamily investment projects in Southern California, focusing heavily in Koreatown and Hollywood.
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Kelsi Maree Borland
