LA Office Building Sold for $20.64 Million to Be Converted into Affordable Housing

The sale of a 74,947-square-foot office building in Encino, California, for $20.64 million to Elysian Housing and Capstone Equities represents a pivotal move towards alleviating the affordable housing shortage in the Los Angeles area. The property, located at 5435-5445 Balboa Boulevard, is set to be transformed into The Oaks on Balboa, a community offering 117 studio and one-bedroom apartments. This development underscores the growing trend of repurposing commercial real estate to meet the urgent demand for affordable living spaces.

Lee & Associates, the broker behind this transaction, highlighted the challenges and opportunities in converting office spaces into residential units. Darren Casamassima, a Principal at Lee & Associates, noted the building's suitability for conversion due to its floorplate depth, ceiling height, and natural lighting. Scott Romick, another Principal at the firm, pointed to the increasing success of such projects in Southern California, signaling a shift in how developers approach the housing crisis.

The location of 5435-5445 Balboa Boulevard in the San Fernando Valley, near the US 101 Freeway, offers residents access to retail, dining, educational facilities, and parks, enhancing the appeal of The Oaks on Balboa as a desirable place to live. This project not only addresses the critical need for affordable housing but also contributes to the revitalization of underutilized commercial properties.

For more information on Lee & Associates and their role in commercial real estate, visit https://lee-associates.com. The conversion of this office building into affordable housing is a testament to the innovative solutions being employed to tackle housing shortages, offering a model for future developments in high-demand areas.