In a strategic move, alternative asset manager Blackstone and Santa Monica-based developer Worthe Real Estate Group have listed a large office and industrial campus in Los Angeles’ Lincoln Heights neighborhood for sale, with expectations of bids reaching $200 million, or $133 per square foot. The property in question is the former Forever 21 headquarters, located at 3880 North Mission Road, spanning 1.5 million square feet, Bisnow reported.
Acquired by the joint venture in late 2018 for $166 million, the eight-building complex includes 265,000 square feet of offices. The 39-acre property, already greenlit for a 1 million square foot development featuring three predominantly industrial buildings.
Brokers Jeff Stephens and Cameron Merrill of CBRE are managing the listing, showcasing the property as a shovel-ready industrial project with all necessary permits in place for a seamless groundbreaking. The move to sell comes after Forever 21 relocated its headquarters from Lincoln Heights to Downtown Los Angeles in 2022.
The approved development plan involves the demolition of seven of the eight existing buildings, aligning with Blackstone and Worthe’s 2022 pursuit of permits for site redevelopment.
Worthe Real Estate Group was founded in 1967 and currently has approximately seven million square feet of properties located throughout the Los Angeles area, according to its website.
Blackstone is the world’s largest alternative asset manager with approximately $1 trillion worth of assets under management. The company’s portfolio spans 12,500 real estate assets as well as more than 230 portfolio companies.
