Unentitled Land in Downtown Los Angeles Location Sells for Highest Price Per Square Foot on Record
Chinese Investment Group Plan to Build Two Condo Towers in Downtown Neighborhood
A Chinese investment group has paid $26 million for a plot of land here where they plan to build twin condominium towers in a transaction that set a new record for price paid per square foot for un-entitled land in the South Park neighborhood of downtown Los Angeles near Staples Center, Colliers International has reported.
Shanghai-based Shenglong Group bought the 44,412-square-foot parcel at the southwest corner of 12th Street and Grand Avenue from property owners Rafi and Danny Shaoulian in the record-setting, all-cash transaction, according to Colliers Executive Vice President Mark Tarcynski, who along with the brokerage firm’s Adam Tischer, represented the brothers in the negotiations. CBRE and Crown Realty represented the buyers.
“So determined to buy this property was the investment group that we had barely listed it when they made their all-cash offer,” said Tarcynski. “It had been on the market for only two days when we finalized negotiations and opened escrow. They knew what a quality piece of redevelopment property looked like and they went after it.”
According to Tarcynski, Shenglong will now join an ever increasing number of Chinese investment firms that are developing residential properties in the downtown region. The site Shenglong acquired now holds just an aging industrial warehouse and a parking lot. He said the warehouse would be razed to make way for the development.
“While the parcel is zoned for residential use right now, and the city supports high density development in the South Park neighborhood, the entitlement for the property should be a slam dunk.,” Tarcynski added.
Shenglong now joins a host of other Chinese investment firms active in buying property for residential and retail development in the downtown market. Others include Greenland USA, which is building the Metropolis hotel condominium and retail complex just north of L.A. Live and Oceanwide Real Estate Group, developers of the Fig Central hotel condominium project and shopping complex directly across from Staples Center.