Despite talk of rising interest rates and an overheated housing market, several new Downtown condominium projects totaling more than 1,000 units have either received city approval or are in escrow, according to real estate sources.
          The projects, which are scattered across Downtown from South Park to the Historic Core to the Industrial District, are part of a frenetic push by developers to construct for-sale housing for urban dwellers eager to buy instead of rent.
          In the Industrial District, Linear City LLC is in escrow for the 1925 Nabisco Biscuit factory at 673 S. Mateo St., which will be converted into about 200 loft-style condominiums, said Paul Solomon, a partner in Linear City. The project would complement the firm's 119-unit condo project, Toy Factory Lofts, across the street, which opened in February.
          "We're building on the progress in the neighborhood, and the development of this property will further anchor the south end of the Arts District neighborhood," he said.
          Linear City plans to close escrow by early 2005. Solomon would not disclose the price of the building. About two-thirds of the 170,000-square-foot, seven-story brick structure is filled with warehousing and garment-related businesses. A 45,000-square-foot building on the property could also be converted into lofts.
          While the Toy Factory Lofts feature sprawling spaces and industrial concrete floors, the Nabisco building includes hardwood floors, brick walls, oversized windows and ceilings exceeding 11 feet. Linear City has so far sold 103 units at the Toy Factory.
          In the Historic Core, the Kor Group plans to turn the Eastern Columbia building at 849 S. Broadway into 120 condos instead of rental units as originally planned, said CB Richard Ellis broker Ed Rosenthal.
          The 12-story Art Deco office building was set to become loft-style apartments, and then converted into condos three years later. But with hundreds of potential buyers signing on to waiting lists for every project, the developers decided to switch tracks.
          "The motive for going apartment was tied to holding off judgment on the condo market," Rosenthal said. "But the market has already made that judgment with the success of the Toy Factory and the Lee Group projects. There seems to be a market imperative to go condo."
          The KOR Group, which developed the Pegasus lofts in the former Mobil Oil building on Flower Street, plans to close escrow on the $20 million deal on Aug. 1. A $50 million renovation will upgrade the 1930 Art Deco building, which is easily identified by its turquoise and gold exterior. The building is about 70% vacant.
          The Community Redevelopment Agency on April 15 approved construction of two high-rise projects in South Park totaling 417 for-sale units. The two project sites consist of 11 lots bounded by 11th Street, Hope Street and Grand Avenue, and are divided by a north-south public alley.
          The developer, South Park RPO, plans to build 194 condos at 1111 S. Grand Ave. and another 223 at 1100 S. Hope St. The units will range in price from $300,000 to $1 million. The Grand Avenue condos will be housed in a 13-story building, while the Hope Street development will have 17 stories; both will contain live-work spaces with some ground-floor, two-story configurations. About 7,500 square feet of retail is planned.
          "The thought of being even a small part of the Central City's renaissance is very exciting," said developer Tom Cody. "The project will build on and complement all of the great things that are already happening in the neighborhood."
          Meanwhile, real estate investor Robert D'Elia, who is in escrow to buy the 1100 Wilshire Building, said he is in negotiations with residential developer Forest City West to convert the former office tower west of the 110 Freeway into condos.
          "They bring to the table experience in residential development, far beyond anyone else in town," said D'Elia, who expects to close escrow in July. "They are experienced in this type of product."
          D'Elia, who heads the Santa Monica-based GTO Hampton, said he is seeking entitlements to add another 200,000 square feet of space to the structure and double the number of units to 460. In its current configuration, the building would accommodate about 260 units. Condos will range in size from 700 to 2,000 square feet.
          "The first floor of residential units is 17 stories above sea level," D'Elia said. "The views are unparalleled."
          The 32-story structure, considered by many to be an eyesore due to its angled glass structure atop 15 levels of boxy brick parking, has sat largely empty since it opened 18 years ago. The asking price for the Class A structure is $37 million - twice what owners Format, Inc. bought it for in 1993.
          While D'Elia has converted smaller commercial properties on the Westside into residential developments, 1100 Wilshire would be his first Downtown project. Forest City, however, has developed multiple housing projects in Downtown, including the Metropolitan. The firm is in the process of developing the Met Lofts and the Subway Terminal Building.

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