When Los Angeles preserves the historical buildings it insures it’s prosperity!
By Jon Regardie of DOWNTOWN LOW ANGELES NEWS – In one new project, Downtowners will see the continuation of two trends: the growth of the hotel industry and increased activity on Broadway.
A joint venture between developers Frank Stork, Channing Henry and longtime Downtown player the Kor Group has purchased the Case Hotel, a 1924 building at 1106 S. Broadway. They plan to turn the 107,000-square-foot edifice into a four-star boutique hotel.
The 13-story building, which is vacant now but recently housed facilities for the YWCA of Greater Los Angeles, sold for the asking price of $13.5 million. The acquisition was funded with private capital and a loan from Karlin Real Estate Lending.
A hotel operator and building transformation details have not been revealed, though the acquisition team said it intends to redesign the red brick and stone masonry property and target “Downtown’s growing population of creative professionals and leisure travelers.”
It is the latest move in the Central City for Kor Group, which was one of the first on the housing scene when it opened the Pegasus Lofts in the Financial District in 2003. The developer has also worked on the Eastern Columbia Lofts, Santa Fe Lofts and the Barker Block.
“We are thrilled to continue to participate in the re-emergence of Downtown Los Angeles,” the Kor Group’s Brad Korzen said in a prepared statement.
Stork and Henry are real estate veterans who have worked on numerous hotel projects in the United States and Mexico.
The project would continue a rush of development on the southern portion of Broadway in Downtown. An Urban Outfitters will open in the former Rialto Theatre at 812 S. Broadway next week and a boutique Ace Hotel, with 180 rooms, is scheduled to debut at 929 S. Broadway on Jan. 15.
Housing developers Barry Shy and Geoff Palmer also have plans to build residential complexes in the vicinity of Ninth Street and Olympic Boulevard on Broadway.
A timeline and budget for the new hotel project have not been announced.
Mike Condon and Ben Stapleton of Jones Lang Lasalle represented the purchasers in the transaction, while seller Jade Enterprises was represented by CBRE.