940 S Hill St
Los Angeles, CA 90015
Land For Sale · 0.81 AC

Saxum West is pleased to present for sale the NEC corner of Olympic & Hill in the center of Downtown LA, which features 35,086 SF of land with an existing 24,432 SF single-story (plus basement) retail structure with rooftop parking. This site has incredible potential, whether as a retail or medical office redevelopment, or as a high-rise residential project akin to the 60-story, 685-unit tower under construction directly across the street. The property will soon be benefiting from an up-zoning with the new Downtown Zoning Code (DTLA 2040) going into effect January 27, 2025, which allows for high-rise development on this site with a bonus FAR of 13.0. Rooftop parking provides up to 75 spaces (83 spaces total) for a parking ratio of 3.4:1000. The property is eligible for AB 2097, which makes it exempt from the enforcement of parking ratio requirements by use. The existing building has a basement of approximately 8,500 SF, bringing the total RSF to ~33,000. There is an existing elevator (currently non-operable) that runs from the basement to the rooftop parking, along with a conveyor belt that services both floors. Existing power: 4000A (Supply), 1600A (Service), 208Y/120V, 3P 4W. The property is currently rented month-to-month by a parking operator paying $16,000 per month gross, and can be delivered vacant at close of escrow. An adjacent lot on the NWC of W Olympic Blvd and S Broadway is also available for sale and can be assembled with this lot for a larger development or to increase parking supply. Two proposed development or redevelopment scenarios for the site: Retail Build-to-Suit — Redevelopment for a single or multi-tenant retail center, such as for a supermarket/grocery operator. Please refer to the example retail model on pages 16 and 17 of the Offering Memorandum. The modeled scenario achieves a 6.39% trended yield on cost, and a ~30% levered IRR in 24 months with a $200 PSF construction budget and realistic lease-up time frame. High-rise Residential — Build up to 445 units, resulting in a land cost of only $40,337 per unit. This assumes 75% efficiency and an average unit size of 800 SF. The site is also eligible for TOC Tier 3, ED-1, AB 2097 and AB 2334.