LOS ANGELES — Mack Real Estate Group, Mack Urban and AECOM Capital have formed a new investment partnership with Capri Capital Partners LLC (Capri) for the development of the $144 million multifamily mixed-use project at 1230 South Olive St. and 1231 South Hill St. in the South Park district of downtown Los Angeles.
Construction on the two-building property, which will include 362 residential rental units and 4,000 square feet of retail space, began Monday. Construction is scheduled for completion in the first quarter of 2017, with pre-leasing beginning in the fourth quarter of 2016.
“This modern apartment project will be a welcome addition to downtown Los Angeles’s South Park neighborhood, and promises to help meet the demand for housing while injecting new life into a formerly underutilized site,” said Ken Lombard, vice chairman of investments and partner with Capri. “We are excited to be investing in one of the most active residential markets in Los Angeles and to play a role in the changing landscape of this diverse community.”
The site of the development is one of several in downtown Los Angeles that Mack Real Estate Group, Mack Urban and AECOM Capital acquired in October 2013 for approximately $80 million.
A joint venture between Tishman Construction, an AECOM company, and Morley Builders will serve as the general contractor for the project, which was designed by architects Togawa Smith Martin Inc.
South Park’s location in downtown Los Angeles is seen as highly desirable given its proximity to retail and entertainment amenities that include L.A. Live, Staples Center, local restaurants, bars, independent art galleries, a Ralph’s supermarket and a Whole Foods slated to open in November 2015.
The two seven-story buildings will feature five levels of wood construction framed above two levels of concrete podium. Two levels of subterranean parking will accommodate 438 cars, and will include 40 charging stations for electric vehicles. The development will also include a large bicycle room and repair shop that can house up to 400 bikes.
Lifestyle amenities will include a pool deck complete with a spa, cabanas, lounge areas and grills, a large gym with outdoor cycling, yoga studio, community rooms with two kitchens, an outdoor roof deck, and grand lobbies with concierge service and a mailroom that provides cold storage for food deliveries. For residents with pets, there will be two dog runs and a full-service dog-wash station.
The plans for the development include a public park with outdoor seating, as well as a bridge that connects the two buildings on the second-floor podium level.
The mix of residential units, averaging 760 square feet, will include 75 percent studio and one-bedroom apartments, with six three-bedroom units and 58 two-bedroom apartments. All units will feature modern interiors, including stainless steel appliances and in-unit washers and dryers.
Mack Urban is the West Coast real estate investment and development business of New York’s Mack Real Estate Group. Mack Urban, which was previously known as Urban Partners, focuses on multifamily residential urban infill projects in major West Coast markets.
AECOM Capital is the investment fund of Los Angeles-based AECOM. Capri Capital Partners is an institutional real estate investment advisory firm that offers real estate equity and debt products.
— Scott Reid