The asset management arm of commercial brokerage CBRE has won the bid to become the manager of the Bloc, following an exit from developer Ratkovich Co. in April, The Real Deal has learned.
National Real Estate Advisors, now majority owner of the massive mixed-use site in Downtown Los Angeles, chose CBRE over commercial brokerage JLL and development firm Lincoln Property Co.
Representatives from National, CBRE, JLL and Lincoln Property did not immediately return requests for comment. A CBRE team comprised of Jeff Pion, Deron White, John Zanetos and Chris Penrose have been leasing the 720,000 square feet of Class A office space at the property.
Wayne Ratkovich’s eponymous development firm, along with National and Blue Vista Management, acquired the sprawling property in 2013 for $241 million. Together, they developed the site into a retail and commercial property that includes a Sheraton Los Angeles Hotel, a 33-story office tower and underground access to the 7th Street/Metro light rail station.
Ratkovich sold its stake in the project to National earlier this year, following several years of setbacks at the 1.8 million-square-foot complex. In February 2016, a $122 million CMBS loan the firm inherited was transferred to a special servicer. The firm also acknowledged the Bloc was $70 million over budget.
Despite a slow start, leasing at the retail complex caught a tailwind yesterday when news broke that Uniqlo, a Japanese fashion company, will be leasing 15,000 square feet at the site. It will join the under-construction Alamo Drafthouse movie theater, Macy’s and L.A. Fitness, among others.