That didn’t take long.
A partnership of Goldstein Plating Investments and Atlas Capital Group has flipped the Coca-Cola bottling plant at 963 E. Fourth St. in downtown L.A.’s Arts District in a $50 million deal with Hudson Pacific Properties Inc.
Goldstein and Atlas acquired the property a little more than a year ago for $19 million.
The deal, at roughly $410 a square foot, topped the average per-square-foot rate in the Arts District, which is roughly $311, according to data from CoStar Group Inc. But asking prices have been on the rise. A 16,500-square-foot industrial building at 300-12 S. Alameda St. is listed for $9 million, or $545 a square foot, after selling for only $6.5 million, or $394 a square foot, last year.
GPI and Atlas purchased the iconic three-story industrial property in April 2014 and announced plans to repurpose the building into roughly 150,000 square feet of creative office space with a restaurant on the ground floor. New York architecture firm HLW International designed the project, dubbed Fourth & Traction.
But the deal with Hudson Pacific came before construction commenced and the new owner will have to sort out a cramped parking situation.
“Parking will be critical to the success of the building,” said Jonathan Larsen, regional managing principal at Avison Young’s downtown office.
Hudson Pacific is one of Hollywood’s biggest landlords and its first venture downtown is seen as a sign of the Arts District’s legitimacy as an office destination.
“(Hudson Pacific) knows that as rents go up in Hollywood and the Westside, more tech companies will come downtown,” Larsen said.
Andrew Jennison, Jim Jacobson and Carle Pierose of Santa Monica’s Industry Partners will handle leasing for the property.
The off-market deal was completed without brokers representing the buyer or seller. Hudson Pacific declined to comment. GPI and Atlas did not respond to requests for comment.
The former Coca-Cola facility sits blocks away from a 300,000-square-foot, 103-year-old former Ford Motor Factory building at 2060 E. Seventh St., which is also seen as a potential spot for tech companies, especially after rumors that New York media company Buzzfeed toured the property. San Francisco firm Shorenstein Properties purchased it in April of last year for $37 million and is converting it into creative office space.
DoubleLine Expands Headquarters
DoubleLine Capital, an investment management firm headed by billionaire Jeffrey Gundlach, is expanding its headquarters in downtown L.A.’s Wells Fargo Center.
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