Chicago joint venture moves forward with East Hollywood campus conversion project

The City of Los Angeles has given the greenlight to two Chicago developers to start construction on an East Hollywood office campus conversion.

A master permit for the entire project has yet to be issued, according to records.

Pending that permit, Chicago developers Klaff Realty and Bond Companies will renovate and remodel the Paul R. Williams-designed community house now on-site. The partnership will build pod-style co-working office spaces on the property for London-based Second Home, along with a restaurant.

The “early start” permit, issued this month, will allow the firms to start interior demolition work on the property, at 1370 St. Andrews Place near Little Armenia.

An LLC tied to the developers purchased the 90,850-square-foot site in August for $20.7 million. Co-working company Second Home had already signed a 20-year lease for the property, The Real Deal previously reported. At $56 per foot, that lease was valued at the same $20.7 million.

Second Home’s lease is slated to begin once the redevelopment is complete. Details regarding the project’s timeline remain scant.

A Bond Companies representative confirmed it has teamed with Klaff to build an office project leased to Second Home.

In addition to the $20 million spent on the acquisition, the Chicago partnership was trying to raise another $20 million for redevelopment costs, according to marketing materials previously released.

Klaff Realty, led by Hersch M. Klaff, owns several properties throughout the United States and Latin America, with the bulk of those being office and retail buildings. Bond Companies, which has offices in both Chicago and L.A., is also developing a multi-family property in Echo Park and a few other properties in Virginia and Illinois.