Portions of Santee Court Go Up for Sale
Real estate in the Los Angeles Fashion District appears to be ripe for the picking.
On the heels of announcements that the California Market Center and Gerry Building are either for sale or are being sold comes word that Santee Court, a 780,000-square-foot residential village, is on the block, as well.
Santee Court is the Fashion District’s first major residential project, featuring up to 550 units of apartments and condominiums. Developer MJW Investments Inc. is exploring the sale of the project’s first phase, which includes 165 lofts at 700 Los Angeles St. Last week, the building welcomed a new Rite Aid drug store on the lower level.
MJW enlisted Los Angeles real estate company Marcus & Millichap to market the building to select parties. A $40 million to $50 million sale could make the transaction work.
“We’re basically testing the market. If we get a great offer, we may sell it,” said MJW President Mark J. Weinstein.
The developer said a neighboring building at 824 S. Los Angeles Street probably will be sold soon. “We’ve received several offers on it, so we probably will sell,” Weinstein said.
That building, a 42,000-square-foot residential facility, currently has tenants and will be sold carrying an option to convert the units into for-sale condominiums. MJW expects to get close to $5 million for the building.
The company is proceeding with construction of 64 for-sale condominiums at 315 Eighth St., also part of Santee Court. The units, with price tags ranging from $275,000 to $700,000, should be ready by the end of the year, Weinstein said.
MJW’s divestment in Santee Court does not mean the company is abandoning the Fashion District. “We just don’t want to have so many eggs in one basket right now,” Weinstein explained.
The company is committed to the Fashion District but is also looking eastward in the Boyle Heights area, where it is seeking entitlements to redevelop land around the Sears, Roebuck and Co. landmark store at 2650 E. Olympic Blvd. into a 23-acre regional mixed-use center with 750,000 square feet of condominiums and 700,000 square feet of retail space. Weinstein hopes to break ground by next July.
“The idea is to address the housing needs for that area as well as provide national retailers for the neighborhood.” —Robert McAllister
