Real estate investment trust Prologis acquired the Arts District property from Greyhound Lines Inc., which will lease it back under a short-term lease.
CBRE Group Inc.’s Phillip Sample, Chris Caras, Michael Shustak and Guy Ponticiello represented Greyhound in the lease. Kidder Mathews’ Jon Reno, Mark Vanis and Trevor Gale
Once Greyhound vacates the property San Francisco-based Prologis will redevelop the site, which is located at 1526, 1614 and 1716 E. 7th St. Plans for the redevelopment have not been announced.
“This deal provides Prologis with a prominent development site with a short-term leaseback from Greyhound, which will give them time to work on the entitlements for a premiere mixed-use project. This was a win-win,” Caras said in a statement.
Sample noted in a statement that there are many projects planned in the Arts District.
“This site is the gateway into the Arts District and represents one of the largest land sales in downtown Los Angeles and the Arts District,” he said. “This property is adjacent to several other massive redevelopment projects in the Arts District to add to the ever-evolving Downtown Los Angeles urban renaissance.”
During the third quarter, there were 475 residential units, more than 1.4 million square feet of office space and more than 200,000 square feet of retail space under construction in the area, according to a report from the Downtown Center Business Improvement District.
There were also more than 4,000 residential units as well as a large number of hotel rooms, office and retail space in the planning stages.
One of the largest projects underway in the area is Carmel Partners’ 475-unit project at 520 S. Mateo St. and ROW DTLA at 7th and Alameda.
ROW DTLA already has 2 million square feet, which includes 1.3 million square feet of creative office tenants.
And AVA Arts District made news late last year when it received a $167 million construction loan. Once completed, the AvalonBay Communities Inc. project will have 475 multifamily units and roughly 60,000 square feet of commercial space.
Other projects in the area, including the AMP Lofts, have opened recently, too. The project, from Bolour Associates, has 320 apartments and 20,000 square feet of retail.
