A site in the heart of Downtown’s historic core that’s primed for a 38-story skyscraper has hit the market for $100 million.
Developer Barry Shy listed the one-acre parking lot at 601 S. Main Street for 23 times more than he paid for it in 2012. It comes complete with entitlements to build a 452-unit rental complex with 25,000 square feet of retail space.
Shy first submitted plans for the project, dubbed SB Omega, in 2014, Curbed reported. If built according to the plans, the tower would be the tallest structure in the historic core and one of the tallest Downtown, according to marketing materials. Still, it would pale in comparison to the Wilshire Grand and the U.S. Bank Tower just blocks away, both of which exceed 1,000 feet.
It wasn’t immediately clear why Shy was walking away from the project, but listing agent Rommy Shy told Curbed that the property has already received significant interest from potential buyers.
A number of buyers continue to be active in the market, despite simmering concern about oversupply and a slight pullback in the availability of financing. Projects in the pipeline and under construction now total nearly 30,000 new units, according to a recent report by the Downtown Center Business Improvement District.
Commercial office deals are still happening, too, though some say they will slow. Tom Barrack and Rising Realty Partners recently paid $456 million for the 42-story office tower at 300 S. Grand Avenue, for instance, The Real Deal reported. [Curbed] — Cathaleen Chen