Los Angeles – December 5, 2016 – CBRE Group Inc. announced the sale of a 38,266 square-foot development site in Downtown Los Angeles’ Arts District to Onni Group.
Onni purchased the lot from Core Development Group for an undisclosed amount in an off-market transaction. Core Development Group, headed by Philip Rahimzadeh, is one of the most active local developers in the Downtown LA Arts District.
“This is a site we never considered parting with being heavily invested in this pocket of the Arts District,” said Rahimzadeh. “When we were approached by Onni Group, their caliber as capable and talented developers and their very positive impact on the landscape of this area, was a large part of our decision.”
CBRE’s Brandon Gill, Brandon Burns and Jae Yoo represented Core Development in their original acquisition of the site in April 2014 and in this sale to Onni.
“Core has great foresight,” said Yoo. “Two years ago, anything south of 7th Street was considered an ‘unproven’ area, but they were a step ahead of the market and wanted to capitalize on what is now considered to be the trendiest strip of the Arts District. They sold the four-acre site at Palmetto & Mateo to ASB/Blatteis & Schnur in 2014, which is now being developed into AT MATEO, the largest retail development in the Arts District, and took a gamble on another project in the outskirts.”
Core also developed the ART HOUSE at 1200 S. Santa Fe Ave., a project featuring 53 live-work lofts and ground-level commercial space, which is currently fully leased.
Onni, which hasn’t yet disclosed specific plans for the property at 2143 Violet, was encouraged in its decision to purchase the site by recently completed deals, including the Warner Music lease at the Ford Factory, owned by Shorenstein Properties, in October of this year and the Hyperloop Campus sale to New York investor Tishman Speyer in the same month.
Onni, based out of Vancouver, has been successful not only with acquisitions but also with ground-up developments, such as Level Furnished Living and another 50-story tower under construction nearby. Over the past decade, Onni has accumulated a portfolio of properties in various parts of Los Angeles and has become an influential factor to the changes currently underway in downtown.
“They saw this as an opportunity to make a mark on one of the most sought after neighborhoods in downtown where progress has been made very rapidly over the last few years and to expand their territory with this strategic purchase,” said Gill. “We were in escrow while the Warner Music deal was announced. It definitely helped move this transaction forward.”
The Arts District has evolved into a 24-7 neighborhood with a number of residential projects planned or underway. Those currently under construction in the Arts District include AMP Lofts, 6AM, Fairfield/Legendary project at 950 E. 3rd Street, The Garey Bldg, and Carmel Partner’s project at 520 Mateo.
“The Arts District has been changing from an almost exclusively industrial market into a live-work-play neighborhood,” said Burns. “In order for that evolution to continue, more residential and retail has to move in to compliment the arrival of all this exciting new office space.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
