| |
Koreatown Redevelopment Project
Opportunity
In 2003, we acquired the historic Kipling Hotel with the intention of repositioning the project to better address the housing shortage in Koreatown and adjoining downtown Los Angeles. The property was 85% vacant due to decades of neglect and mismanagement.
Solution
Upon purchasing the property we began work with the city of Los Angeles to rezone the property to “light housekeeping.” The building underwent major restoration to modernize the mechanical, plumbing and electrical systems. The exterior façade and common areas were restored to accentuate the buildings’ original 1920’s style and décor.
Results
The renovation and conversion of the Kipling Hotel created much needed housing in a densely populated area of Los Angeles.
We were able to refinance our bridge loan with permanent 30-year financing at above the principal level of our bridge loan, thus returning a portion of the proceeds back to equity. The 139 units were successfully marketed achieving 95% occupancy. The ground floor retail space was rented to a successful restaurant operator who signed a long-term NNN lease. |
