Blackstone JV Seeking Demolition Permits For Forever 21 HQ
Three years after an entity managed by Blackstone purchased the Forever 21 headquarters, Blackstone and its joint venture partner, Worthe Real Estate Group, are taking steps to demolish at least part of the structure.
The property is a 2.1M SF industrial complex in Lincoln Heights.
In July, the ownership group submitted six demolition permit applications to the city’s Department of Building and Safety for buildings on the site. That same month, permit applications for two new buildings on the property were submitted: a one-story warehouse and a two-story warehouse. The square footage for these buildings is unclear.
In June 2021, HIG originated a $185M loan to a JV of Worthe Real Estate Group and Blackstone for the Forever 21 property, Commercial Property Executive reported. The JV planned to use the financing "to lease up the sprawling property," according to CPE.
EQ Office, a Blackstone-managed entity, bought the property for $165.5M in 2019.
An application was also submitted to the city’s Department of City Planning for a haul route of more than 285,000 cubic yards of dirt from the property, “in conjunction with the redevelopment of a warehouse, logistics and light industry facility.” The people who are listed as applicants work for Worthe.
Representatives for Blackstone and Worthe declined to comment for this story. A view from the street shows no staging activity or equipment on the site.
The same year Forever 21 sold its headquarters, it laid off over 1,000 workers and planned to move its distribution to the Inland Empire.
Blackstone and Worthe have partnered before on media-focused properties. Together they are planning to develop a 500K SF office tower in Burbank aimed at entertainment tenants. In 2017, Blackstone bought a majority stake in an office portfolio in the Burbank Media District owned by Worthe.
