LOS ANGELES, Calif. – June 11, 2014 – (RealEstateRama) — Charles Dunn Company, one of the largest full-service regional real estate firms in the Western United States, has been selected to market National City Tower, a historic adaptive reuse development that includes 93 residential lofts, as well as ground floor and basement retail space. Built in 1924 and redeveloped in 2008, the 12-story, 118,162-square-foot property was the former branch of National City Bank. The property is being offered at $45 million and has a projected initial capitalization rate of 4.7 percent.
Janet Neman and Bryan Glenn of Charles Dunn Company are the exclusive brokers to market the property on behalf of the private ownership, Los Angeles-based National City Towers, LLC.
“The timing for this property to hit the market couldn’t be better,” stated Neman. “The ground floor and basement retail space is now occupied by three restaurant tenants who are doing very well, drawing a strong base of residential and business customers. Additionally, with the revitalization and regentrification of the market and high occupancy of the residential portion, a buyer will have the rare opportunity to own a stabilized, institutional grade, historic property in Downtown LA.”
Over the past 12 months, the retail portion of the asset has become fully leased. Terroni, a successful gourmet Italian restaurant chain opened its doors on the ground floor of the property. Terroni consists of approximately 6,000 square feet of space and boasts floor-to-ceiling windows, dramatic French columns and an ornate ceiling. The basement space totaling nearly 4,200 square feet of space which is accessible from the street, is also fully occupied. Tenants include Peking Tavern, a restaurant and bar that serves Northern Chinese cuisine and a unique cocktail menu, and Crane’s Downtown Bar, which is located in the original vault of National City Bank and utilizes the vault door as it entry.
“With pent up demand and capital seeking trophy assets in core markets, we have already been garnering a significant amount of interest from a wide range of potential buyers including those in 1031 Exchanges, foreign investors and institutions,” commented Glenn. “National City Tower also offers the opportunity to add value as the rents are currently below market rates.”
Located in the heart of the Historic Financial District at 810 South Spring Street, the tower was designed in the Beaux Arts style. In 2008, it was redeveloped and elegantly transformed into one of Downtown’s finest in luxury living loft developments. National City Tower’s 93 residential units include 12 studios, 61 one-bedroom units, 16 two-bedroom units, two, two-bedroom penthouses and two three-bedroom penthouses. Unit sizes range from approximately 617 square feet to the largest two-story, penthouse unit of approximately 1,884 square feet. The open floor plans offer maximum flexibility in design and arrangement to the resident. Units are characterized by their high ceilings, gourmet kitchens, dramatic views, polished concrete floors, and elegant, modern finishes. Abundant windows create unparalleled light throughout the units and give way to exquisite unobstructed views of the Downtown Los Angeles skyline. The property features attractive amenities that include a roo ftop garden, spa and barbeque surrounded by city views, as well as a fitness and media room.
Adding to the attractiveness of the investment, National City Tower is a property that benefits from The Mills Act Historical Property Contract Program allowing qualifying owners to receive a potential property tax reduction and use the savings to help rehabilitate, restore and maintain the building.
According to a 2013 Annual Report by the Los Angeles Downtown Center Business Improvement District, of the $17.3 billion dollars invested in Downtown between 1999 and 2013, the largest percentage of that – more than $6 billion – was represented in residential building, followed by $5.2 million in mixed-use building as the area’s population has grown from 18,700 residents in 1999 to 53,320 residents in 2013.
About Charles Dunn Company
Charles Dunn Company is one of the largest full-service regional real estate firms in the Western United States. Established in 1921 and headquartered in Los Angeles, the firm’s brokerage practice continues to be a market leader. The firm also manages more than 21 million square feet of office, industrial, retail, residential and mixed-use properties for third party clients and provides construction management, architecture and design, general contracting and capital markets services. With more than 260 team members in nine offices, Charles Dunn Company’s reach extends far beyond its physical locations, as its experienced professionals leverage their market knowledge, relationships, and expertise to achieve and exceed client expectations. www.charlesdunn.com