CIM Shops Luxury Apartment High-Rise in Los Angeles
Asking price of $263M is 40% less than replacement cost.
CIM Group is listing for sale a luxury apartment tower in Downtown Los Angeles with a price it says is 40% below replacement costs.
Cushman & Wakefield has been tapped to market the 525-unit 888 at Grand Hope Park, located at 888 South Hope Street. The building, known as 888 Hope, was built in 2018 and is 94% occupied, Green Street reported.
The 34-story tower includes 10K SF of retail that is fully leased to Petco and Habit Burger. The property is connected to a seven-story parking garage will space for 797 vehicles.
According to Green Street’s report, the listing includes two nearby parking structures encompassing 1,184 parking spaces and 20K SF of ground-floor retail, occupied by Keck Medicine of USC that may be acquired with the luxury apartment tower or separately.
Los Angeles-based CIM’s asking price for 888 Hope translates into about $500K per unit.
Rents in the building average $3,000, with the average unit encompassing 811 SF. Apartments feature floor-to-ceiling windows with blackout shades, unfinished concrete ceilings and wood-style flooring.
Amenities at 888 Hope include an indoor/outdoor penthouse lounge as well as a 30K SF “park” on the eighth floor, with groves, landscaping, paths and a pool and cabanas.
According to the report, the average household income of the building’s tenants is $271K, with major tenant employers including Amazon, Apple, Google, NBC Universal and the University of Southern California.
According to marketing materials for the property, rents are expected to grow due to a limited supply of apartments in the area and an anticipated 89% decline in new apartment deliveries next year.
The 888 tower is in proximity to the local campuses of Arizona State University, the Fashion Institute of Design & Merchandising, California State University and USC. With more than 51K students and 22K SF faculty within two miles of the apartment building.
UCLA, which also is planning to establish a campus in the area, purchased the 334K SF Trust Building at 433 South Spring Street in June.
The marketing for 888 Hope also is touting the 2028 Summer Olympics, which are projected to generate close to $10B in economic activity in Los Angeles, as well as 2M SF of new movie and television studio developments in the DTLA area, with 45 new soundstages planned.