Fashion District Developer Buys L.A. Properties
Los Angeles real estate executive George Peykar, who owns a number of Fashion District properties, has purchased two Los Angeles Financial District buildings, which he plans on turning into livework apartments.
The buildings, in the 500 block of West 7th Street, are just north of the Fashion District and are close to the Macy’s Plaza shopping center, the Biltmore Hotel and Pershing Square. Both buildings have been vacant for more than a decade, said Mark Tarczynski, a broker with CB Richard Ellis, which represented Denver-based Thermo Grand Avenue, owner of the structures.
“At one point, these buildings were scheduled for demolition, but the [Los Angeles] Conservancy stepped in,” said Tarczynski.
One of the buildings, at 500 W. 7th St., formerly housed Coulter’s Depar tment Store, while the other, at 518 W. 7th St., ser ved as of fice space. The buildings together comprise about 140,000 square feet and flank the old Brooks Brothers building, which is also slated for residential development. The proper ties can be redeveloped under Los Angeles’ adaptive reuse ordinance, which of fers incentives for residential development.
While Peykar’s plans have not been made official, said Tarczynski, conversion to a residential/mixed-use project appears to be the trend for older historic buildings as housing demand remains strong despite the recent lackluster economy.
Developer Mark Weinstein, who just celebrated the reopening of the Gerry Building in the Fashion District, is planning to build a 780,000-square-foot mixed-use village downtown.
And Anjac Properties’ Steve Needleman is planning a project above the Orpheum Theatre.
The sale price of Peykar’s buildings was not disclosed, but sources said the sellers got close to their $8 million asking price. —Robert McAllister
