Topaz Tower Apartments — a 12-story, 292,540-square-foot trophy office tower fully entitled for adaptive reuse to a class A, high-rise apartment project — has sold for an undisclosed price. The property is located within an opportunity zone in downtown San Pedro. An opportunity zone is an economically distressed area where new investments, under certain conditions, may be eligible for preferential tax treatment.
Newmark Group Inc. 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, Harbor Associates and Platform Ventures. Urban Stearns purchased the property.
“Harbor Associates and Platform Ventures executed a fantastic business plan to entitle an existing office building for adaptive reuse in downtown San Pedro, creating much needed housing for the area,” Benton said in a statement.
Added Shannon, “Adaptive reuse of office to multifamily, mixed-use or industrial will become increasingly common given the sector headwinds.”
The existing office building’s physical attributes, including ample on-site parking, high ceilings and rooftop space, position it for a seamless adaptive reuse execution to a multifamily property, according to Newmark. The new project will include 228 studio, one-bedroom and two-bedroom apartments with views of the Pacific Ocean, balconies in 70% of the units and a rooftop amenity deck with a resort-style pool.
“While outstanding office buildings in thriving employment hubs will continue to flourish, we are hopeful the city will continue collaborative efforts with developers to convert challenged office properties to much needed housing,” said Muhlstein. “A successful plan acknowledging retrofit and budget challenges will effectively create meaningful rental supply for Angelenos to enjoy a higher standard of living.”
Topaz Tower Apartments is located one block away from the ocean and two blocks away from the West Harbor mega-project, a 42-acre waterfront development that will reimagine the retail, entertainment and dining scene in the San Pedro and Long Beach areas.
Downtown-based Ratkovich Co. and Jerico Development in San Pedro are redeveloping the long-running Ports O’ Call Village into West Harbor, a project with a 66-year ground lease that is 10 years in the making. Its first phase is expected to cost $155 million.
Eateries will include the first-ever satellite location of Hollywood restaurant Yamashiro, a King and Queen Cantina, Poppy + Rose, Pitfire Pizza, Jay Bird’s Chicken, Marufuku Ramen, the Win-dow Burgers, Sugar Factory and a 9,000-square-foot market hall for fast-casual dining. The development will also include Bark Social, a membership-based off-leash dog park, bar and café, Olala Crepes and Mario’s Butcher Shop. There will also be a Mike Hess Brewery with a 20,000-square-foot beer garden.
The West Harbor development will also include a 6,200-seat amphitheater, more than 20,000 square feet of waterside space for attractions and harbor excursions, and 1,200 linear feet of courtesy dock to accommodate boats as well as eight acres of outdoor recreation tenants, parks and leisure spaces on the waterfront.
West Harbor is expected to open in 2024.
