The Cornfield’s latest project in Chinatown is a 200K sf self-storage facility

Five years after rezoning, warehousing remains desirable in the "CASP"

Los Angeles /
Jan.January 31, 2019 03:15 PM
World Class Capital founder Nate Paul

It’s never a bad idea to build by-right.

That’s the notion behind a self-storage facility going up on a large lot in Chinatown just inside the Cornfield Arroyo-Seco Plan Area, or CASP.

A joint-venture between Barings and World Class Capital, a Texas firm, bought a 2.3-acre site at 1000 N. Main Street last May for $14.6 million. The partners are looking to exploit the demand for self-storage services, which has risen nationally, especially in big cities like L.A.

The 200,000-square-foot project, which will have three floors, doesn’t need a zoning variance and has been advancing through the permit process since last July, records show.

The city created the CASP in 2013 out of a distressed industrial zone straddling the Los Angeles River around Broadway, which included a massive brownfield site. New zoning allowed for creative office and residential uses along with “hybrid” industrial.

JLL marketed the property as an “opportunity to create an iconic space” and a “blank canvas,” according to a brochure from last year.

In the end, the site lent itself best to a storage building, according to Nicole Mihalka, who led the listing team.

“We were able to yield the highest value to a storage developer because they could build it by-right,” Mihalka said. “It’s the particular zoning of the site that constrained the pool of buyers.”

That’s because the Main Street site is inside CASP’s “Urban Center”—one of four sub-zones within the area—which only allows for a limited range of mostly commercial uses. “Urban Village,” for example, is more tolerant of residential use.

Other bidders pitched a variety of office, industrial, and mixed-use projects, Mihalka said, but those would have required some approval from the city.

Great Value Storage, a subsidiary of World Class, will operate the facility.

World Class wasn’t immediately available for comment.


Related Articles

arrow_forward_ios
Oaktree’s  Howard Marks with 444 S. Flower Street (Oaktree, Getty)
Coretrust loses DTLA tower to Oaktree in foreclosure
Coretrust loses DTLA tower to Oaktree in foreclosure
Tova Capital's Zach Boren along with 205-233 East Anaheim Street in Long Beach (Getty, Tova Capital, Google Maps)
Tova Capital buys 35K sf shopping center in Long Beach for $6.2M
Tova Capital buys 35K sf shopping center in Long Beach for $6.2M
HFH's William Allen, 217 S Barranca Street, West Covina
Family office pays $38M for West Covina apartments
Family office pays $38M for West Covina apartments
Compass' Scott Tamkin with Senderos Canyon
263-acre Bel-Air canyon up for auction with $39M starting bid
263-acre Bel-Air canyon up for auction with $39M starting bid
RBM's Hiro Kobayashi with 11264 La Grange Avenue
RBM buys film company HQ in Sawtelle for undisclosed price
RBM buys film company HQ in Sawtelle for undisclosed price
LA Offices vs LA Warehouses
LA County office vacancy rises to 16.5%, study finds
LA County office vacancy rises to 16.5%, study finds
25530-25765 Springbrook Avenue, Santa Clarita
Scenic Expressions leases 300K sf warehouse in Santa Clarita
Scenic Expressions leases 300K sf warehouse in Santa Clarita
A photo illustration of Cineworld's CEO Mooky “Moshe” Greidinger (Getty)
Regal Cinemas to close 39 U.S. theaters following bankruptcy
Regal Cinemas to close 39 U.S. theaters following bankruptcy
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...