Editor's Note: This article has been corrected to report that Palisades Capital Partners is based in Beverly Hills.
One of the last large land parcels near downtown Los Angeles, a 5.25-acre plot that was owned by a Korean Presbyterian church, has sold to a Beverly Hills developer.
Palisades Capital Partners shelled out roughly $30 million for the site at 1111 W. Sunset Blvd. in Echo Park, right at the border of downtown.
Palisades will redevelop the site, which includes a sanctuary and other abandoned buildings, into a mixed-use residential project with retail facing Sunset, said Phillip Sample of CBRE Group Inc., who represented both the buyer and seller in the transaction. Official plans have not been submitted.
Palisades could not be reached for comment.
Sources said the firm has already acquired several properties in Los Angeles. In a job listing on the L.A. chapter of the American Institute of Architects’ website, Palisades describes itself as “currently developing high-end residential and mixed-use projects in Santa Monica, Westwood and Beverly Hills.”
The seller, Holy Hill Community Church, was in bankruptcy. Richard J. Laski was appointed by the U.S. Bankruptcy Court to sell the site on behalf of the church as part of a Chapter 11 reorganization. Now that the sale is complete, he will go through the arduous process of addressing the claims filed against the church and paying back its debts.
“This was a dysfunctional church, and so this is a case where bankruptcy proceedings benefited everyone and allowed the church to stop worrying about creditors and start worrying about being a church,” Laski said.
The campus, once the headquarters of the Metropolitan Water District, was acquired by the church in 1994 for $8.1 million. In 2011, the church sold a building on the site to downtown developer Linear City for $6.8 million. Linear converted that property, a 110,200-square-foot office building at 1115 W. Sunset, into the upscale Elysian Apartments. That development was not part of the deal with Palisades.
Mike Shustak and Chris Caras of CBRE also represented the buyer and seller in the transaction.
The creative office conversion craze that has swept through Santa Monica, Playa Vista and El Segundo is reaching deeper into the South Bay, if a recent sale in Torrance is any indication.
Century City’s Ruth Group purchased two Class B office buildings totaling 107,000 square feet at 680 and 690 Knox St. for $17.2 million. It paid roughly $160 a square foot to the seller, Toronto investor Brookfield Asset Management Inc., which declined to comment on the sale.
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