LOS ANGELES—Developer SunCal has purchased a 14.6-acre land site in the Arts District in Downtown Los Angeles from an unnamed partnership for $130 million. Although development plans for the site are still in the works, the local Irvine-based developer says it will build a mixed-use complex with some combination of office, residential and retail.

“The seller was a partnership that had invested in the area many years ago when the neighborhood was purely industrial,” Bradford McCarthy, SVP at CBRE, tells GlobeSt.com. “They watched the Arts District grow up around their property and made the decision that it was time to move on and sell the property to a someone who could realize its potential for higher and better use.” McCarthy represented the seller in the transaction along with his CBRE colleagues Brandon Gill, Jae Yoo and Brandon Burns.

The sales team conducted a global marketing campaign for the site, and received tremendous interest from high-level developers and investors. McCarthy could not disclose the number of offers the team received for confidentiality reasons, but did say, “We had incredibly strong interest from a good number of parties.” He had little information on the buyer's plans for the site, other than that it is expected to be a creative and highly designed space.  

With this sale, it is clear that the ongoing renaissance in Downtown L.A., which has now shifted its focus to office users, is far from over, and that investors are still plucking any available land at any cost. “The sale of 6th and Alameda is further evidence of the continuing evolution of Downtown L.A.,” says McCarthy. “The city has seen meaningful growth in all of its key hubs, and the Arts District is among the most diverse and thriving urban environments. People want to be here in Downtown for the live-work-play environment and it's not only a lifestyle choice, but an opportunity to experience these unique neighborhoods. Downtown L.A. is the only place in the city where you have a tremendous amount of jobs coupled with a walkable environment that provides access to the arts, cultural venues, restaurants, transportation and much more.”