San Francisco-based finance firm SteelWave has acquired The Switchyard, a recently built office, and retail campus, from CEG Construction for $80 million.
The 150,451-square-foot, Class A creative office campus, located at 500 and 540 South Santa Fe Avenue near the Los Angeles River and 4th Street bridge, currently sits empty.
Cushman & Wakefield stated the sale is an important sign of recovery for Downtown L.A. offices as the city faces record levels of vacant and sublease space following the pandemic.
The two-building campus was finished in two phases ending in 2019. The most newly finished 500 building includes 100,000 square feet of office across five stories and adds ground-floor retail space.
The 540 building, completed in 2012, includes 50,888 square feet of office across two stories. SteelWave plans to renovate the exterior and outdoor areas.
Other important projects include a 113,000-square-foot office project underway by development firm Lowe between Santa Fe Avenue and the L.A. River.
And a half-block from that project, the parent company of Warner Music Group acquired the 255,000-square-foot Ford Factory adaptive reuse project last year for $193.5 million.
Steve Marcussen, Erica Finck, Bailey Dawson, with Cushman & Wakefield served both SteelWave and CEG in the investment transaction.