San Francisco-based SteelWave has made an $80 million creative office play in the Arts District.
The firm bought a 150,451-square-foot campus called The Switchyard from CEG Construction for $80 million, according to the Los Angeles Business Journal.
The complex is two vacant buildings on neighboring parcels at 540 and 500 S. Santa Fe Avenue.
The building at 540 was completed in 2012 and totals about 51,000 square feet. The building at 500 was completed in 2019 and spans 100,000 square feet.
Both properties are considered Class A, but Steelwave plans to paint the exteriors, add murals, improve the outdoor seating and landscaping and upgrade the lobbies, according to the Business Journal.
Developers and investors have poured money into the Arts District for several years, buying up former industrial properties to transform into offices.
Builders have continued to pursue projects throughout the pandemic. A handful of new efforts have also surfaced in the past year or so.
In late April, Continuum Partners announced plans to build a 10-building mixed-use complex where Los Angeles Cold Storage now sits at Central Avenue and Fourth Street.
Hines and Access Industries want to build a 470,000-square-foot office and retail building next to the Ford Factory building.
[LABJ] — Dennis Lynch