(Editor’s Note: According to public documents reviewed by The Registry, the property was sold by an entity affiliated with Reuven Gradon, president of Afton Properties. This entity purchased the property in November 2018 for $21,680,000. The current buyer has not been identified at this time.)
LOS ANGELES, Calif. – July 18, 2024 – Cushman & Wakefield is pleased to announce the successful sale of 612 S. Broadway, an approximately ±80,000-square-foot landmark building in Downtown Los Angeles’ historic core. The six-story creative office and retail property was sold for $16 million and was brokered by a distinguished team from Cushman & Wakefield, including Mike Condon Jr., Erica Finck, Reid Gratsch, Brittany Winn, and Kylie Rawn, in partnership with Mark Zakarian.
Originally built in 1924 as Desmond’s Department Store and designed by the renowned architect A.C. Martin, 612 S. Broadway stands as a testament to LA’s architectural heritage. The building underwent a comprehensive redevelopment, transforming it into a state-of-the-art creative office space while preserving its historical essence. This ambitious project, overseen by local architect firm Omgivning, included adding two new floors atop the original structure, further enhancing its utility and aesthetic appeal.
The redevelopment project was completed and delivered fully preleased in 2020, with Skechers securing the ground floor retail space and a coworking concept occupying the majority in the remainder of the building. However, the timing coincided with the onset of the COVID-19 pandemic, presenting unforeseen challenges.
Despite these headwinds, the building’s potential was recognized by a private investment group that identified a unique buying moment in the market, to acquire a trophy asset at below replacement value. The buyers are a local family office that intend on moving their operations into the space.
“The acquisition of 612 S. Broadway by this group is a remarkable story of local growth and resilience,” said Mike Condon Jr. Vice Chair. “This purchase underscores the vibrancy and potential of Downtown LA’s market, showcasing the area’s continued appeal and ability to attract dynamic businesses.”
“The sale of 612 S. Broadway is not an isolated success. It highlights a broader trend of recovery and renewed interest in Downtown LA. Notably, UCLA’s recent acquisition of 433 S. Spring further demonstrates this resurgence, with significant investments reflecting confidence in the market’s future,” continued Condon Jr.
“The successful sale and subsequent occupancy by the buyers are a positive indicator of Downtown LA’s recovery and growth,” added Erica Finck, Senior Director. “It’s encouraging to see local firms expanding and investing in the area, contributing to the revitalization and economic development of the historic core.”
The acquisition and occupancy of 612 S. Broadway symbolizes more than just a real estate transaction; it marks a new chapter in the building’s storied history and a hopeful future for Downtown LA. As the area continues to attract prominent businesses and institutions, the outlook for this historic submarket, also known as SOBRO, is increasingly optimistic.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more.
