Multi-Housing News: “After Many Years, New Residential Tower Will Enter LA Skyline”
January 22, 2015
By Keith Loria, Contributing Editor
Los Angeles— Trumark Urban will develop 1050 S. Grand, a planned 22-story condominium in Downtown Los Angeles, thanks to $77 million in construction financing.
The tower will be the first to enter the Los Angeles skyline in almost seven years.
“There is a huge demand for multifamily product, especially condominiums, in Los Angeles and 1050 S. Grand is currently the only condominium development ready to begin construction,” John Manning, JLL’s managing director, said. “Trumark Urban has an extensive and impressive track record developing urban residential properties, most notably in San Francisco, with the vision to bring a contemporary, modern property to LA.”
Once completed, 1050 S. Grand will consist of 151 luxury condominiums plus seven levels of parking and 5,672 square feet of ground floor retail space.
The Property is located in a prime downtown location of Los Angeles’ South Park neighborhood, just a few blocks from entertainment (LA Live!, Staples Center, Nokia Theatre and Regal Cinemas), shopping (Ralphs Fresh Fare and City Target, along with Whole Foods which is currently under construction), hundreds of restaurants, thousands of new apartments and walking distance to a half a million jobs. In fact, Walkscore.com ranks this location an 86 for “very walkable.”
JLL research shows that in Los Angeles, housing prices have surged 18 percent year-over-year, and while there are 5,000 apartment units under construction in the downtown market, there are zero condominiums currently under construction.
“This will be the first condo construction deal in downtown LA during this cycle,” Manning says. “Additionally, this is the only condo project in the pipeline. There is no new supply of condo inventory and strong demand for condo product allowing for an attractive position for a JV equity partner and lender.”
According to Gregg Nelson, Trumark Urban’s co-founder, the area’s fundamentals made the market a prime location for the development.
“In particular, the renaissance of Downtown LA is attracting investors and residents alike all drawn to the entertainment, dining and retail options surrounded by a large employment center,” he says.
This is the fourth closing that JLL has helped facilitate on behalf of Trumark during the past two years, totaling $460 million of placed capital.