THE BLOC | LOS ANGELES, CA
- Rentable SF : 2 Million
- Property Type : Mixed-Use
- Status : Various
Built in 1973, 700 S. Flower consists of a 32-story, 750,000-square-foot office building, an enclosed two-story 420,000-square-foot shopping mall (anchored by Macy’s), and a six-level parking structure with 2,000 parking spaces. The full block mixed-use project also contains a 496-room Sheraton Grand hotel. In 2013, National on behalf of its open-end, commingled fund and The Ratkovich Company, a local developer, purchased the property and rebranded the site as The Bloc. At purchase, the office building was only 56% leased and the retail component suffered from a lackluster mix of tenants and dated design. The Sheraton hotel on site required extensive refurbishing to be competitive with new hotel product.
Transforming into a 24-hour district with an expanding population base, the downtown LA real estate market is undergoing a renaissance, spurred by new residential activity, entertainment venues, cultural amenities, and sports facilities. The Bloc is well-positioned to participate in this revitalization given its prime location centered between the financial and civic district to the north and the Staples-Convention Center to the south as well as surrounding apartment tower construction.
A comprehensive redevelopment of all components include:
- Reconfiguring the existing retail space at The Bloc into a California-style shopping experience with an open-air roof and a vibrant mix of retail tenants; turning the Macy’s into a flagship store; and attracting higher-end retail tenants.
- Renovating the office tower lobby and common areas to transform a Class B property into a Class A, creative-leaning, contemporary office product.
- Reinvigorating and upgrading the Sheraton with extensive room and common area improvements.
- Creating a new connection within the complex, providing direct access to the 7th Street subway station from the retail plaza, thereby, substantially increasing daily foot traffic directly in and through the retail and associated site components
The hotel was provided a new higher-end designation, The Sheraton Grand Los Angeles, upon completion of the renovation. Since the renovation, hotel performance has outperformed projections and continues to rank within the Top 10 hotels on TripAdvisor as measured within the greater Los Angeles area. The open-air retail plaza improvements have been completed, and a vibrant mix of retail tenants are continuing to lease space and open, including Alamo Draft House and Cinema, UNQILO, Joey Restaurant, Drybar, Nordstrom Local and others. The office building common areas have been successfully repositioned, including a unique and compelling rooftop amenity deck. The office tenancy is consistently increasing with creative-leaning companies, including: Golin Harris, HauteLook, Farfetch, StudioOneEleven and more.