LA Office Building Sold for $20.64 Million to Be Converted into Affordable Housing
A significant sale in Encino, California, sees an office building purchased for $20.64 million to be transformed into 117 affordable studio and one-bedroom apartments, addressing the critical need for affordable housing in the region.
The sale of a 74,947-square-foot office building at 5435-5445 Balboa Boulevard in Encino, California, for $20.64 million marks a pivotal step towards addressing the affordable housing crisis in the Los Angeles area. The property, acquired by Elysian Housing and Capstone Equities, is set to be redeveloped into The Oaks on Balboa, a community offering 117 studio and one-bedroom apartments. This transaction, facilitated by Lee & Associates LA North/Ventura, underscores the growing trend of converting office spaces into residential units to meet the soaring demand for affordable housing.
Darren Casamassima, a Principal at Lee & Associates, highlighted the challenges and creativity involved in such conversions, noting the building's suitability due to its floorplate depth, ceiling height, configuration, and natural lighting. Scott Romick, Principal/Managing Director at the same firm, pointed to the evolution of developer strategies in Southern California, where several office-to-multifamily conversions have already proven successful.
The location of 5435-5445 Balboa Boulevard in the San Fernando Valley, near the US 101 Freeway, offers residents access to retail, restaurants, schools, and parks, enhancing the appeal of The Oaks on Balboa as a future home for many. Romick also mentioned another promising opportunity for multifamily development at 21115 and 21255 Califa Street in Warner Center, emphasizing the potential of such projects under current state regulations incentivizing housing development.
This sale not only represents a significant investment in the future of affordable housing in Los Angeles but also reflects the innovative approaches being taken to tackle the housing shortage. For more information on Lee & Associates and their services, visit https://lee-associates.com.