Former clothing manufacturer makes 130-unit bet on Ktown

Raymond Saviss plans to invest $38M in 2 apartment buildings

Jan.January 27, 2017 04:00 PM

In Los Angeles, fashion and real estate seem to be cut from the same cloth.

Raymond Saviss, a longtime clothing manufacturer, is among the apparel merchants seeking a piece of La La Land. Namely, he’s setting his sights on Koreatown, where he has two apartment building developments in the works, The Real Deal has learned.

The rookie developer hopes to break ground on a seven-story, 81-unit structure at 2859 Francis Avenue, between Koreatown and MacArthur Park. Saviss acquired the property, which is occupied by a single-family home, for $3.7 million in February 2015. He will invest about $24 million into an apartment complex on the site, Saviss’ daughter, Amanda, who is involved with the project, told TRD.

About a mile north, Saviss is planning a 48-unit apartment building at 139 Occidental Boulevard, which he bought for $3.1 million in July 2015. It’s also occupied by a single-family home, property records show, and the developer plans to pour an additional $14 million into a development on the site.

He will finance both projects through construction loans and private investors.

Saviss is targeting Koreatown because of its central location and burgeoning nightlife scene, Amanda said. It’s also an attractive neighborhood for the influx of millennials that have flocked to L.A. in recent years, she added.

Koreatown was a popular submarket for new projects in 2016. In the fourth quarter, 18 of the 19 total projects filed were in Ktown, according to a TRD analysis of filing data.

The Saviss family is not, however, concerned about a possible oversupply, Amanda said.

“We do think that an area like Downtown is actually being developed too much,” she said. “There’s already high vacancy there, but such is not the case for Ktown. We’re not worried or threatened by the number of developers — in fact it could be beneficial because they’re updating a lot of outdated buildings and could raise rents, in a healthy way of course.”

Saviss’ debut project was in Brentwood, the 45-unit condo complex dubbed the Cosmopolitan BW, which opened in 2015. The family has another project in Brentwood in the works, Amanda said.

Related Articles

CGI’s Gidi Cohen and the Fedora Street project

CGI scores $48M in construction financing for Koreatown multifamily project

The Koreatown Plaza is hitting the market (Credit: Google Maps)

Venerable Koreatown Plaza is up for sale

From left, clockwise: Daydream Apartments’ Griffin and Grace on Spring, Douglas Emmett’s The Glendon at Westwood and Carlyle Group’s Sofia Los Angeles

Here are LA’s 5 biggest multifamily sales of 2019

A rendering of the project and Douglas Bystry, President and CEO of Clearinghouse

Koreatown resi complex marks firm’s entry into Opportunity Zones

L.A. City Attorney Mike Feuer and a rendering of the Koreatown project (Credit: Getty Images)

LA sues Koreatown developer Michael Hakim

L.A. Councilman Herb Wesson and an empty lot Rosewood Corp. is looking to build on (Credit: Getty Images and Google Maps)

Koreatown tower developer gave city council president’s son a deal on rent: report

Michael Sorochinsky, Steven Fifield, Mike Parrell, and Next on Sixth

Big deal: Sam Zell’s Equity Residential buys 398-unit Koreatown resi complex

Top to bottom: a rendering of the project and a photo of the site at 3170 West Olympic Boulevard (Credit: Google Maps)

Koreatown hotelier sells shovel-ready development site entitled for 252 units