Realm Group LLC, a joint venture between Realm Estate LLC and The Bascom Group LLC, has acquired a 1.7-acre parcel of land in downtown Los Angeles for $24.25 million. The site is planned for the development of a 33-story, 452-unit high rise multifamily community.
LOS ANGELES, July 26, 2018 /PRNewswire/ — Realm Group, LLC (“Realm Group”) a joint venture between Realm Estate, LLC (“Realm Real Estate”) of Newport Beach, California and The Bascom Group, LLC (“Bascom”) of Irvine, California, has acquired a 1.7-acre parcel of land in the Fashion District of Downtown Los Angeles for $24,250,000. The sale closed on July 6, 2018. The site is entitled and planned for the development of a 33-story, 452-unit high rise multifamily community, the first tower to be built in the emerging Fashion District. HFF’s capital team, led by Charles Halladay, Andrew Hornblower, and Jamie Kline, secured a land loan from Ladder Capital for the acquisition of the site. HFF continues to represent the project’s vertical construction financing.
Fashion District Tower
Realm Group rezoned and entitled the existing parking lot, located at the corner of 7th Street and Maple Avenue, to approve the high-rise development, including 13,600 square feet of ground floor commercial space. The modern, concrete, steel and glass tower with a bold loft style design will feature a rooftop lounge providing striking city skyline views and 1-acre amenity deck at the 6th floor with a pool terrace and oversized dog park.
With its co-development partner, Urban Offerings, the mixed-use development represents a series of redevelopment projects recently announced and underway in the burgeoning Fashion District, spanning adaptive reuse creative office, food hall and street-level retail improvements. The project’s Downtown Los Angeles location capitalizes on the expanding job and cultural base complemented by its 7th Street connection from the Historic Core to the Arts District and proximity to major transportation arteries.
The project is also located in the newly created Opportunity Zone and has been established as a qualified Opportunity Fund – a privately managed investment vehicle organized as a corporation or a partnership for the purpose of investing in qualified Opportunity Zone property. The Opportunity Zones program was recently established by Congress in the Tax Cut and Jobs Act as an innovative approach to spurring long-term private sector investments in urban and rural communities nationwide. The program is based on the bipartisan Investing in Opportunity Act. The program establishes a mechanism that enables investors with capital gains tax liabilities across the country to receive favorable tax treatment for investing in Opportunity Funds that are certified by the U.S. Treasury Department. The Opportunity Funds use the capital invested to make equity investments in businesses and real estate in Opportunity Zones designated by each state.
Darrin Olson, principal of Realm Group, commented “The Fashion District Tower builds upon Downtown Los Angeles’ ongoing successful revitalization in a city facing a housing crunch. Additionally, the Fashion District has an eclectic appeal with its base of creative design and media professionals and flourishing arts, culinary and fashion-related businesses, all transcending into desirable residential living.” Todd Caldwell, Development Manager of Realm Group, adds “We are excited to receive the entitlements and close on the site and begin the next phase of development. The location not only is located in the highly desirable and emerging Fashion District but will offer panoramic views of the Downtown Los Angeles skyline. The Opportunity Fund qualification is an added bonus.”
Realm Group has another high-rise development in the works in Downtown Los Angeles that will consist of a 36-story, 422-unit multifamily tower. That project is located in the rapidly developing Downtown Los Angeles area west of the 110 Freeway known as City West.
About Realm Group: Realm Group is a 10-year joint venture between Realm Estate and Bascom. The partnership acquires and develops commercial and residential properties throughout Southern California. Realm Group currently has multiple multifamily projects in various development stages in both urban and suburban markets. Realm Real Estate is a Newport Beach, California based real estate investment company, owned and operated by principal Darrin Olson. Bascom is a private equity firm specializing in value-added multifamily, commercial, and non-performing loans and real estate related investments and operating companies. Bascom sources value-added and distressed properties including many through foreclosure, bankruptcy, or short sales and repositions them by adding extensive capital improvements, improving revenue, and reducing expenses by realizing operational efficiencies through implementation of institutional-quality property management. Bascom, founded by principals Jerry Fink, David Kim, and Derek Chen, is one of the most active and seasoned buyers and operators of apartment communities in the U.S. Since 1996, Bascom has completed over $15.5 billion in multifamily and commercial value-added transactions including more than 321 multifamily properties containing over 83,986 units. Bascom has ranked among the top 50 multifamily owners in the U.S. Bascom’s subsidiaries and joint ventures include the Southern California Industrial Fund, Rushmore Properties, Bascom Portfolio Advisors, Shubin Nadal Associates, Spirit Bascom Ventures, REDA Bascom Ventures, MHF RM Holdings, Bascom Northwest Ventures, Bascom Arizona Ventures, Harbor Associates, Village Venture Partners, Bascom Milestone Ventures, and the Realm Group. Bascom’s subsidiaries also include Premier Business Centers, the largest privately held executive suite company in the U.S. For additional information, please visit www.bascomgroup.com.