A Sacramento-area investor is marketing a low-slung office park in Downtown Los Angeles for a leasehold and possible redevelopment.
An affiliate led by Jas Bains, head of Roseville-based Dominus Companies, has listed the five-building Park DTLA for a leasehold at 201-281 South Figueroa Street, near Bunker Hill, Bisnow reported.
The price of the leasehold, which includes 270,000 square feet of offices and 400 secured parking spots, was not disclosed. As a leasehold, the sale would include physical improvements at the site and leasehold rights under the long-term ground lease, but not the land.
The affiliate, Roseville-based Park at DTLA LLC, bought the office park in 2022 for $1.5 million, or $5.60 per square foot, according to Tony Wood, director of leasing and sales for eXp Commercial.
Wood is marketing the leasehold for a possible redevelopment opportunity for either apartments, a satellite campus for a university, or entertainment or media facilities.
“The last sale was a commercial lender’s [real estate-owned] sale, and millions have been spent in improvements at The Park,” Wood told Bisnow.
The three- and five-story campus topped by bright colored bands on Figueroa, between 2nd and 3rd streets, has indoor-outdoor conference and event rooms and areas, landscaped courtyards and a cafe.
The property is 25 percent to 35 percent occupied, Wood said. Tenants include media companies PBS and the Associated Press.
The affiliate led by Bains was founded in Roseville in 2022, according to state business records. Bains once served as a vice president of investments for Calabasas-based Marcus & Millichap, according to his LinkedIn page.
The firm is open to joint venture proposals and partnership interests, Wood said. “This is one of the only full city-block, low-rise campuses in the heart of Downtown Los Angeles,” Wood said in a news release.
“The Park DTLA offers a unique combination of infrastructure, security and scale that cannot be replicated — making it a compelling canvas for developers, government agencies, educational institutions or studio operators.”
Office vacancy in Downtown Los Angeles last quarter was 34 percent, according to CBRE, compared to 24.2 percent countywide. Factoring in “shadow space” — leased but unused offices — the availability rate exceeded 29 percent.
Downtown has long faced challenges exacerbated by the pandemic, causing property values to plunge and landlords to struggle with necessary renovations and tenant concessions.
Read more
