An East Coast company has teamed with Century City real estate services firm Blatteis & Schnur to purchase five warehouse buildings in downtown L.A.’s Arts District for $32.5 million, the companies announced Wednesday.
Most of the money was put up by ASB Real Estate Investments of Bethesda, Md. Blatteis & Schnur will have a minority stake in the development. The seller was not disclosed.
ASB said it plans to invest an additional $30 million to redevelop the industrial complex into a 125,000-square-foot retail center that will be occupied by a grocery store, restaurants, bars and shops. The plan is to create an open-air atmosphere and keep the 24-foot high ceilings. The center will feature more than 900 feet of street frontage along Palmetto and Mateo streets.
The firms believe the downtown neighborhood will continue its resurgence as more professionals move into the area.
“The Arts District evolution tracks what we are seeing in major urban centers around the country where demographic and economic trends are helping regenerate old warehouse districts,” Robert Bellinger, chief executive at ASB Real Estate Investments, said in a statement.