A Los Angeles builder has found a new home, at a downtown site that could someday become homes.
Residential and hotel builder the Kor Group will move later this year after purchasing a 60,000-square-foot office building complex located at 1212-1224 S. Flower St. for $22.9 million.
Kor, a real estate investment, development and management firm, will shift from its current headquarters in the Miracle Mile area at 5750 Wilshire Blvd. in a move that not only gives the company a new corporate headquarters, but also a potential residential development site.
"They are in the business of residential development, so that site could eventually become a residential development site," said Madison Partners principal Chris Houge, who represented seller John A. Martin & Associates Inc. "The primary directive was to relocate from the Miracle Mile, though."
Kor's downtown residential projects include the Eastern Columbia condo tower at 849 S. Broadway, which will open later this month, and the 297-unit Barker Block loft development on Hewitt Street, among others. In addition to other residential developments, the company's local portfolio includes hotels in Santa Monica, Beverly Hills and West Hollywood.
After John A. Martin & Associates, a structural engineering and design firm, moves out of the Flower Street building in May, Kor will renovate the building.
Kor will move into the five-story building after the engineering firm vacates and will occupy the top four floors. The ground floor is currently leased out to a health care company. The deal, which closed Dec. 31, breaks down to about $382 a foot.
Houge called Kor a "perfect buyer."
"They wanted to get into a position where they own their corporate headquarters," said Houge, adding that Kor currently leases its space at 5750 Wilshire Blvd.
Kor declined to comment except to confirm the transaction has been finalized.
After the Flower Street sale, John A. Martin & Associates signed a 10-year lease for 32,000 square feet of office space at the Federal Reserve Bank Building, located at 950 S. Grand Ave. That $8 million lease deal with building owner the Federal Reserve Bank of San Francisco also closed Dec. 31.
Houge said that John A. Martin & Associates decided about six months ago that it was time to sell the Flower Street building.
"They wanted to get into a more efficient office space on one floor, which we accomplished," said Hougue, who represented the firm on the lease deal, which breaks down to about $2.09 per square foot per month.
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