San Pedro Office Building With Apartment Conversion Entitlements Sells
A 12-story building built as an office property but entitled for a multifamily conversion has sold in San Pedro.
Topaz Tower Apartments, a 293K SF office building, is fully entitled for conversion to an apartment project, according to a release from Newmark. The office property at 222 West Sixth St. is also located in a federal opportunity zone.
The sale price was not disclosed and public records do not yet reflect the sale. Harbor Associates bought the property in 2019, paying $44M, the Los Angeles Business Journal reported at the time. Harbor Associates declined to comment on the sale price.
As a multifamily property, the building will hold 228 studio, one- and two-bedroom apartments, 70% of which will have balconies.
The property was entitled and sold by Harbor Associates and Platform Ventures. Harbor Associates’ desire to convert the property into housing emerged back in 2019, according to Urbanize LA coverage from the time.
The buyer was LA-based real estate investment firm Urban Stearns.
Newmark co-head of U.S. capital markets Kevin Shannon, Executive Managing Director Ken White, Senior Managing Directors Chris Benton and Scott Schumacher and Managing Director Anthony Muhlstein represented the sellers in the deal.
“Adaptive reuse of office to multifamily, mixed-use or industrial will become increasingly common given the sector headwinds,” Shannon said in a statement.
Office-to-apartment conversions, though popular in concept, have proven challenging to execute, though not impossible. In Mid-Wilshire now, CIM Group and its partners are working to convert a low-rise building into a mixed-use building with office and residential space.
