Associated Estates has provided an update on two development site acquisitions in California.
In the Arts District of downtown Los Angeles, Associated Estates has entered into a joint venture agreement with Legendary Developments to develop and own a 5.6 acre site known as “950 Third,” which is adjacent to the Southern California Institute of Architecture (SCI-Arc).
The JV plans to build 472 apartments with ground floor retail and structured parking. The site has been entitled to accommodate the project.
Legendary will be a 50 percent partner and contributed the land, which the joint venture valued at $30 million. Associated Estates will contribute equity to the JV by funding the pre-development and development stages. Associated Estates will be responsible for development, construction management and property management.
The site is located approximately nine miles from another Associated Estates community, the planned 175-unit Desmond on Wilshire, which it acquired in May 2012.
Associated Estates has also paid $44 million for a 3.36 acre site in the South of Market (SoMa) neighborhood in San Francisco. This site is fully entitled for a 408-unit apartment community that will also contain retail and structured parking.
A development agreement has been reached on the project with Halcyon, the multifamily development consultancy of Richard Lamprecht and Amir Massih, who previously led the West Coast development efforts for Archstone.
Associated Estates reported that it plans to own and develop the project in a joint venture, and says it is in discussion with potential joint venture partners.