A building in Los Angeles’ Arts District sold for a record price on Friday, highlighting the skyrocketing demand for space in the downtown area.

The 5,000-square-foot industrial building at 802 Mateo Street was sold by NBVBN through Jones Lang LaSalle for $3.5 million – a cost of $700 a square foot.

Lorena Tomb, vice president of JLL in Los Angeles, said that the breakneck speed of development and acquisition in the Arts District had made the building attractive to multiple buyers. The building’s skylights, structure and corner location at 7th Place and Mateo Street also upped the price.

“I don’t think buildings that size that don’t have a corner location deserve that price,” Tomb said. “But for comparable properties on hard corners, I wouldn’t be surprised to see more properties trading for higher prices.”

In November, JLL took the building over from CBRE Group Inc., which was unable to close on a deal during the six months prior.

“Our main concern was that it had been on the market for a while and people wouldn’t pay attention to it anymore,” Tomb said.

JLL said it was able to complete the sale to a private investor in little over a month thanks to growing hype about the Arts District. According to the investment firm, the buyer hopes to develop an event space.

A block north of the building, at 7th Street and Mateo, another property is on the market for $720 a square foot, according to JLL.