CIM Group-Led Partnership Begins Office-to-Resi Conversion in LA
By Greg Cornfield March 7, 2023 7:15 pm
reprints
While Los Angeles faces a growing office vacancy problem and a yearslong housing crisis, a prominent developer and landlord is converting most of a three-story office building into luxury apartments.
Creative Media & Community Trust (CMCT) — the real estate investment trust run by CIM Group — announced Tuesday that it has partnered with Kanden Realty, Taisei Corporation and a third international (unnamed) investor to reimagine the 144,300-square-foot building at the former Farmers Insurance headquarters at 4750 Wilshire Boulevard in the Mid-Wilshire area. Construction started earlier this year.
The two upper floors will be converted into 68 apartments — six of which will be designated as affordable — while approximately 30,000 square feet of fully leased office will remain in place on the ground floor. The project will also feature a coworking area, a lounge, a high-end pool with a courtyard, and a fitness and yoga studio.
CMCT said the project will bring much-needed housing to the market, and that it will be designed to meet the needs of professionals working under a hybrid model.
Colliers reported L.A.’s multifamily occupancy ended 2022 at 96.3 percent, and the market recorded the highest yearly sales volume in its history last year. At the same time, office vacancies in L.A. are expected to continue rising, with muted leasing and investment activity this year.
While it can be expensive and arduous to secure permits and complete a office-to-residential conversion, a state lawmaker introduced a bill to make it faster and easier to advance such developments.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
