Waterbridge Capital and Continental Equities are seeking $425 million for Downtown Los Angeles’ massive Broadway Trade Center.
The joint venture has been shopping the 1.1-million-square-foot property at 801 South Broadway since August, but did not publicly advertise an asking price. The price comes out to $395 per square foot, according to Commercial Observer, which first reported on the listing amount.
Compass and CBRE are handling the off-market listing.
The property is entitled for a variety of uses and plans, according to CBRE marketing materials. That includes four floors of office use above ground floor retail and two floors of hotel use above that. Architecture firm Omgivning has put together some redevelopment plans.
Omgivning’s website elaborate on plans for the property, including the addition of penthouses, a park, gardens, swimming pools, and restaurants on the rooftop and removing 55,000 square feet of interior space for a courtyard.
Waterbridge and Continental, which are both based in New York, started shopping the complex after failing to secure $251 million in bridge financing. They purchased the property in 2014 for $122.3 million with ambitious plans to redevelop it.
The Broadway Trade Center building dates from the turn of the 20th century. It covers half a block and rises nine stories, with 2.7 acres of roof decks alone.
The property has most recently been used as a garment manufacturing building. Waterbridge and Continental removed 267 tenants after purchasing the property, demolished interiors and restored the façade.
The Los Angeles office market has been struggling in recent months. Overall vacancy climbed to 15 percent from 13.7 percent from the second quarter, according to a recent report. And last week, CBRE confirmed it had shifted its global corporate headquarters from 400 South Hope Street in Downtown to Dallas. The move did not involve closing any L.A. or California offices or shifting personnel [CO] — Dennis Lynch