LOS ANGELES—February 16, 2005—CIM Group continues its South Village development with the addition of 267 condominiums along with 56,000 square feet of retail to include a Ralphs Supermarket under a revised plan for the second phase of this 7.2-acre development. CIM Group has selected the Lee Group to develop the condominiums, continuing their partnership that began with the Flower Street lofts, the trailblazing project that launched the for-sale housing boom in downtown Los Angeles.
"The for-sale market remains very strong in downtown. Housing demand, coupled with other market factors, led us to rethink our timetable and bring condominiums, instead of apartments, into this second phase rather than in later phases of the development as previously planned," said Shaul Kuba, principal, CIM Group.
South Village's $110 million second phase, called the Market Lofts, will feature six levels of loft-style condominiums above a 50,000-square-foot Ralphs supermarket and 6,000 square feet of restaurant and retail space. Coffee Bean and Tea Leaf, Quiznos, Coldstone Creamery and a UPS Store have signed leases. CIM Group is in discussions with tenants for the two remaining spaces.
The 267 condominiums will be built around a swimming pool atop the market with a central landscaped plaza, spa and clubhouse. A 319-space parking structure will be constructed behind the building to provide condominium owners with direct access to the residential floors. Subterranean parking will serve the visitors to Ralphs and the other shops and restaurants.
"Housing in this area of downtown, known as South Park, is particularly attractive as it is convenient to restaurants, shopping, entertainment and the subway," noted Jeff Lee, president of the Lee Group.
CIM Group and the Lee Group have been developing for-sale housing in downtown Los Angeles since 2002. Today they are currently under construction and have taken reservations for 45 of the 66-unit Grand Lofts. In July, the partnership will begin construction on the 106-unit Olive Street Lofts and later this year will begin an adaptive reuse program at 801 Grand where the team will convert floors 12-22 of this office building to 132 condominiums.
"I am pleased to see that the development of both the much-anticipated Ralphs market and new for-sale, loft-style condominiums is moving forward," said Councilwoman Jan Perry. "The demand for housing continues to remain high and I know that these new housing units will attract more residents to our growing downtown."
South Village is a $500 million development bounded by 8th and 9th, Flower and Hope Streets. The first phase of the five-phase development at South Village was completed in early 2004 with the opening of the 251-unit Historic Gas Company Lofts, now more than 80 percent leased. Following completion of the Market Lofts in December 2006, CIM Group plans to bring an additional 700 housing units to South Village on three remaining sites entitled for high-rise condominiums flanking the Market Lofts.
Combined, CIM Group and the Lee Group currently account for more than 1,600 housing units completed, under construction or planned in the South Park area of downtown Los Angeles.
About the Lee Group
The principals of The Lee Group have been developing residential communities since 1957. The focus of the Los Angeles-based company is for-sale single and multi-family housing in urban infill locations and its homes range from those designed for first-time buyers to luxury residences such as those under construction at Playa Vista.
About CIM Group
CIM Group is an integrated, full service real estate investor with in-house acquisition, development, finance, leasing, and management capabilities. CIM Group directs its efforts towards districts of high population density, including the downtown areas within large cities, smaller "main street" districts within towns and suburban cities, and other locations which lie within the metropolitan areas of the country. Since its inception in 1994, CIM Group has been a leading force in the creation of great streets in the cities of Santa Monica, San Diego, Pasadena, Brea and Hollywood.