CBRE Wins Management Rights For The Bloc In Downtown Los Angeles
CBRE beat out several major commercial real estate companies to win the property management assignment for The Bloc in downtown Los Angeles.
Just a couple of months after The Ratkovich Co. sold its interest in the mixed-use development to partner National Real Estate Advisors LLC, National awarded the asset services arm of CBRE the assignment for managing the retail and office components of the 1.8M SF mixed-use property at Seventh and Flower streets.
“Bringing CBRE on board to manage The Bloc’s retail and office space will continue the recent momentum we have achieved in realizing our vision for creating a transformational redevelopment, part of downtown’s ongoing revitalization,” National President and CEO Jeffrey Kanne said in a news release.
“The retail, office and hospitality components are now positioned to work together, benefiting our office tenants, retailers and hotel guests, as well as delivering an exceptional amenity for local workers and downtown residents,” he said.
National chose CBRE over JLL and Lincoln Property Co. for the assignment, The Real Deal reports.
The assignment comes at a time when demand for creative office and retail are booming in burgeoning downtown. Since 1999, downtown Los Angeles has received more than $7.3B in residential, $1.2B in arts and entertainment and $2.6B in civic and institutional investments, according to CBRE.
The development that would become The Bloc was built in 1973 by architect Charles Luckman. The Ratkovich Co. and National spent $250M to renovate the site into The Bloc, which is the city’s largest mixed-use development. The development has 420K SF of open air, urban retail space, 722K SF of office and a 496-room Sheraton Grand hotel.
CBRE officials said this is one of the company’s most important assignments and that they plan to manage The Bloc as a private-label program to take advantage of the strong branding already in place.
“With our technology-enabled processes and programs, we feel CBRE Asset Services can enhance the functionality while bringing tremendous value and expertise to this world-class project,” CBRE Executive Managing Director for Asset Services in the Western Division Robert Peddicord said.