Offering Procedure
Colliers International has been retained as exclusive Sales Advisor by Grand Historic Properties, LLC, a subsidiary of Martin Building Company, owner of the South Park Lofts Building, located at 816 & 818 South Grand Avenue in Downtown Los Angeles, California. Prospective Purchasers and their brokers (if any) will be required to execute a Confidentiality Agreement before specific information can be released.

Offers from Prospective Purchasers will be due before 5:00pm (PST) MARCH 11, 2011. Once the Owner has reviewed all offers, Owner, through Colliers International, will counter only those offers deemed “qualified” at Owner’s sole discretion. Since ability to close the transaction according to the terms of the purchase contract will be of paramount importance to Owner, inclusion of Prospective Purchaser’s acquisition history, recent property acquisition history, and financial statements identifying the source of funds for the Property’s purchase, would greatly aid the Owner in evaluating the Prospective Purchaser’s qualifications.

Offering Highlights:

• Mills Act tax savings. Downtown Los Angeles (DTLA) owners of qualifying historic properties – this includes South Park Lofts – have Mills Act tax status, saving them substantial money in property taxes.
• 98% leased with substantial rental income upside. In-place rents are 16.5% below market rates, providing a great opportunity to increase rental income over the next 12 months.
• Impressive amenity package. The property has excellent amenities including a rooftop lounge and sun deck, fitness center, an outdoor spa, striking skyline views, ample storage, and gated subterranean parking.
• 49 elegant live/work lofts. Whether to buy or to rent, “Urban Pioneers” desire for adaptive reuse projects remains strong. Market rents have risen consistently over the last three quarters and eager loft hunters have lined up by the hundreds for auction type events. Concerto, for instance, sold 77 lofts in one day this summer for an average of $400/sq. ft., and the Watermarke Tower sold in 2010 for over $520,000 per unit. Indeed, with limited housing supply and increasing numbers of people flocking to downtown, the existing residential inventory does not even come close to meeting statistical demand.
• The South Park District is jumping. With energy resonating from the additions of the JW Marriott/Ritz Carlton, Nokia Theatre, LA Live!, the Staples Center, the Grammy Museum, Ralphs, numerous prestigious residential high-rises and the brand new Regal Cinemas’ 14-screen theatre, the South Park District is experiencing action not seen in over 70 years. And it keeps coming!
• Close to Educational Opportunities. There are 14 universities in DTLA, including the Fashion Institute of Design and Merchandising which is just down the street. These schools are a source of significant pedestrian traffic as well as a large, educated student population to drive up apartment rental demand.
• Proximity to public transportation. DTLA is the most accessible region in Los Angeles County. It is the center of the four most traveled freeways in LA County, as well as the expanding light-rail and metro-rail systems with hubs at Union Station. Residents can easily walk to the Metro Center Station just two blocks away.
• Live, work, and play Downtown. The South Park Lofts are located within reach of employment opportunities, exciting nightlife, and world class restaurants. There are approximately 12 jobs per DTLA resident, which far exceeds the average in most other major cities. There is also an abundance of dining and cultural activities within walking distance including, Bottega Louie, one of the highest grossing restaurants in DTLA, Big Wangs, Tranquility Base Restaurant & Lounge, and the highly acclaimed Rivera Restaurant.