March 03--A 290-unit apartment complex in the burgeoning South Park district of downtown Los Angeles has sold for $200 million to a Chicago real estate investment trust.
The 22-story building called 8th + Hope was one of the first high-rise apartment buildings downtown to be built and sold since the financial crisis of 2007-08. It opened last summer at 801 S. Hope St. and is about half occupied, according to Atlanta developer Wood Partners.
Wood Partners sold the nearly 300,000-square-foot building, which includes retail space on the ground floor, to Essex Property Trust, a publicly-traded REIT. It is located east of the L.A. Live entertainment complex in the same block as Ralph's supermarket.
There was "extremely high" interest in the property among real estate investors, according to Wood Partners, and the price per square foot -- about $671 -- exceeded previous sales of multifamily complexes in downtown Los Angeles, the firm said.
"We started developing this project in early 2007 when the vision of a revitalized downtown was still a question in many people's minds," said Frank Middleton, Wood Partner's Western region development director. "It was exciting to roll this out while also participating in the coming of age of the downtown market."
8th + Hope is a luxury building with floor-to-ceiling glass, balconies, wood flooring and granite countertops in the units. It has a rooftop deck, fire pit, spa, garden, screening room and guest suites. There is a concierge and services such as housecleaning, pet care, grocery delivery and porter service are available.
Rents typically exceed $4 per square foot, or about $3,240 a month for a one-bedroom unit, according to real estate data provider CoStar Group Inc.
Wood Partners has more than 3,000 apartments completed or under construction in California, the company said.
