The 8th+Hope luxury apartment high-rise in downtown Los Angeles was acquired by Essex Property Trust, Inc. in Chicago for $200 million, which equates to roughly $690,000 per unit.
Key Benefits of 8th+Hope
What makes this acquisition so notable is that it is the first time a multifamily property was built and listed for sale in Los Angeles following the recession. This glass apartment building is 22 stories high and consists of 290 units. Construction on the property, which is located near the La Conventional Center, LA Live, Nokia Theatre, and Staples Center, as well as incredible restaurants, bars, and cafes, was completed in the summer of 2014.
In all, there is 300,000 square feet and currently, more than 50 percent has been rented. However, the seller believes by the third quarter of this year, the building will have reached “stabilized” occupancy, which is the best projected range of long-term occupancy.
The apartment building boasts one, two, and three bedroom units, some as small as 700 square feet and others up to 1,700 square feet. These units range in rental price between $2,774 and $7.060 per month. Key inside features of the apartments include high-end interior finishes, large balconies, and floor-to-ceiling windows. On-site property amenities include a pool, spa, private theater, salon, social area complete with fire pit, rooftop deck, club room, covered parking, and guest suites.
As a bonus for living in this high-rise are concierge, porter, pet sitting, housekeeping, and grocery delivery services.
Currently, Los Angeles, as well as many other cities in the United States, is seeing revitalization of both residential and commercial real estate. Not only does this include new developments but also improvements in public transportation and entertainment venues.
According to Brian Hansen, director in California of Wood Partners who sold LA’s high-rise luxury apartment building, downtown Los Angeles is experiencing tremendous investment and development activity and perhaps 8th+Hope can play a role in the important changes. More and more people are showing interest in living in areas that are livable but also connected to community activities within walking distance.
Curtis Palmer with Beverly Hills CBRE who was the representative for the sellers of 8th+Hope, Wood Partners in Atlanta and CBRE Wood Partners Development Fund 3, said the transaction was positive for both seller and buyer. With this, downtown Los Angeles has an amazing upper-scale apartment asset located directly next door to the Gas Company Lofts.
The Future of Downtown LA
Obviously, seeing a brand new high-rise luxurious apartment building being sold in an area like downtown Los Angeles California is exciting. The underscores three key things. First, the country as a whole is recovering from the recession, second, California is making a comeback as part of that recovery, and third, people are still willing to spend good money for high-end living but they want access to community amenities and genres.
Many believe this is just the beginning and that there will be other newly built apartment buildings go up for sale within the near future. After all, lending is good and interest rates low so this is a prime time for acquisitions to take place.