C&W Arranges Recapitalization of Pegasus Apartments in Downtown L.A.
30 Jul, 2008, Los Angeles, CA
The Pegasus Apartments, the 322-unit luxury residential apartment complex with prime ground floor retail, including The Daily Grill, at 612 S. Flower St., was recently recapitalized at a value of approximately $100 million with Buchanan Street Partners.
The Kor Group purchased the 425,000-square-foot former General Petroleum Headquarters Building in 2001 and converted the building to luxury rental apartments with ultra-modern amenities. It remains one of the largest adaptive reuse projects in Downtown Los Angeles.
Cushman & Wakefield's Southern California Capital Markets Group arranged the transaction, led by the group's Managing Director Marc Renard.
According to Mr. Renard, the transaction demonstrates the "continued demand for urban-infill, well located properties in high-barrier-to-entry markets," despite the national slowdown in investment property sales. "This property was extremely attractive to a wide variety of investors, and is representative of the types of opportunities that continue to draw broad-based investor interest from around the world."
According to Brad Korzen, CEO of The Kor Group, "Pegasus was and is a visionary project important to Downtown L.A.'s 24-7 vibrancy. We remain committed to Downtown Los Angeles's dynamic growth and its emergence as a world-class city."
The Pegasus consists of studios, one- and two-bedroom rental apartments rising 13 stories at the intersection of S. Flower Street and Wilshire Boulevard. The apartments boast nine-foot ceilings, a rooftop pool and garden, fitness center, on-site retail and gated parking within the building. The restaurant the Daily Grill is located on the ground floor.
It was voted the "Best Place to Live" by LA Downtown News.
Robert S. Brunswick, founder and President and CEO of Buchanan Street Partners stated "Pegasus's irreplaceable location and distinct market appeal create a compelling investment opportunity for long-term additional value creation. We are excited about working with The Kor Group and embrace their vision for this unique asset.
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About The Kor Group
About Cushman & Wakefield
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[Note to Editors/Reporters: a photo of the Pegasus Apartments is available electronically by request.]