LOS ANGELES, Calif. –– Cushman & Wakefield announced the firm has represented Mart South L.P. dba Jamison Services in the dispositional sale of an adaptive reuse hospitality redevelopment site in downtown Los Angeles. Jamison Services previously entitled the site for a 149-key hotel development. Located at 124 E Olympic Blvd in the heart of the Downtown LA’s emerging Fashion District submarket, the site currently houses a fully vacant and non-operational 70,744-square-foot office building on nearly ±0.3 acres.
Shivom, LLC and principal Kevin Wadhwani acquired the site for $18 million or $120,805 per key and will be partnering with Sammy Chotirmal of Hospitality Solutions to construct the combination adaptive reuse and new construction redevelopment.
In addition to the 149 hotel keys, rooftop pool, and penthouse suites, the new, 7-story hospitality project will include ground floor restaurants and rooftop F+B, which plans include the world-renowned team of SBE to operate the future concepts. The hotel component of the property will start on the second level rising to the deck and pool area at the rooftop level. Parking will be located on one level of the subterranean parking area and in an adjacent parking lot immediately west of the building.
Cushman & Wakefield’s Mike Condon Jr, Erica Finck, Connor Martin, McKenna Gaskill, and Rob Hooks represented the seller in the transaction. The buyer was represented by Jim DeRegt of Lee & Associates.
“This transaction is a key turning point in Downtown Los Angeles’ post-pandemic hospitality market. Many experts recognize the lifestyle and boutique hotel segment in DTLA has been recently setting performance records, despite what is happening with other product types in the submarket,” said Vice Chairman Mike Condon. “As DTLA recovers and continues to zoom past pre-pandemic revenue and occupancy benchmarks, we expect this to be the first big news on new hospitality development demand, but certainly not the last as we have other exciting development deals in the pipeline anticipated to be announced early next year.”
Condon continued, “The news that a world-renowned lifestyle operator like Mama Shelter is joining other major projects in the Fashion District, like Brookfield’s newly delivered CMC project, demonstrates that the Fashion District is the next “it” micro-market in DTLA. We are confident that we will see lifestyle operators continue to pour back into this area as well as corporate users, as already evidenced by major brands such as Forever 21 and Adidas which have joined the fold into LA’s new, hottest submarket—The Fashion District.”
“Hospitality is a real estate product type that tends to remain buoyant even through periods of recession. One of the greatest advantages that hospitality has is its ability to re-price every night, which has allowed investors to keep pace on acquisitions despite the current choppiness in the capital markets,” added Condon.