A proposed development site could soon have a new owner after recently hitting the market in Los Angeles. The 39,256 square-foot project site, located at 1240-1264 W. Los Angeles, is currently entitled with a 24-story mixed use development, an offering memorandum for the property shows.
The soon-to-be Bella Vista Tower is listed by Colliers International for $14.9 million, after recently receiving a price cut. Previously, the property was listed as unpriced. According to public records, the site was last sold in 2018 to Moss and Company, a California-based property management group, which received approval for the mixed-use project at the property site.
According to project plans, the development would consist of 335 residential units, with 34 set aside for low income residents. The project also includes 237 automobile parking stalls in a three level subterranean parking garage as well as 335 bicycle stalls, a gym, two pools, and 11,007 square feet of retail and office space. The project also includes 43,602 square feet of common open space and 13,376 square feet of private open space.
Currently, the project site is developed with five warehouse buildings totaling 29,488 square feet. These would be demolished in order for the planned development project to take place.
Located in Los Angeles’ City West neighborhood, the site is in a primarily residential location. Nearby are several mid-rise apartment communities, including Sofia Apartments, Seven West and TenTen Wilshire, among many others. The neighborhood is also home to various single family properties and various retail and commercial buildings. Multiple bus lines, including the future Regional Connector, also allow CIty West residents to easily commute in and out of downtown Los Angeles.
“City West is fast becoming a residential area, kind of the urban bedroom community of downtown Los Angeles, if you will, for those folks who don’t want to locate in the core where it’s the fast and furious everyday, but they want to locate close to the core because that’s where their jobs are,” Mark Tarczynski, the listing agent with the property, said.
In general, Tarczynski said Los Angeles is in need of additional high-quality multifamily properties, making the Bella Vista Towers project a needed addition to the area. According to a second quarter multifamily market report from Kidder Mathews, this is apparent in Los Angeles’ declining vacancy rate. The brokerage firm reported a 5.4 percent vacancy rate in the Los Angeles multifamily market, while rental rates increased approximately 2.4 percent in the second quarter of 2021. At the same time, construction was down 29.2 percent year-over-year.
“We have a perennial housing shortage problem…Because of that housing prices are going up and up and up. To me, and to most people who look at data, the way to solve this housing crisis is to build your way out,” Tarczynski said. “Demand is up, supply is down. What happens? Prices go through the roof, and when prices are through the roof, that gives you a higher return on your investment.”