Chinese Investment Group Buys South Park HotelWednesday, August 6, 2014
Shenzhen Hazens Real Estate Group Co., one of the largest development companies in China, has purchased the Luxe City Center Hotel and two adjacent parcels for $105 million.
The hotel property, at 1020 S. Figueroa St., was sold by Beverly Hills developer Emerik Properties Corp.
The 178-room hotel, which sits on about eight-tenths of an acre across the street from the Staples Center and L.A. Live, is the second the Chinese firm has purchased in Los Angeles in the last year. In December, Shenzhen Hazens bought the 802-room Sheraton Gateway Los Angeles Hotel near Los Angeles International Airport for $96 million.
Once a Holiday Inn, the Luxe hotel opened with the West L.A. boutique hotel flag four years ago after a $10 million renovation. After a time, Shenzhen Hazens will likely tear down the hotel to build a larger, fancier hotel, according to the Wall Street Journal, which first reported the transaction. The firm plans to spend at least $250 million to develop condos and an office tower on the adjacent vacant land.
Shenzhen Hazens’ entry into the downtown L.A. development market is the latest in a recent flood of investment by Chinese investors. Beijing developer Oceanwide Real Estate Group purchased the 4.6-acre site known as Fig Central, across from the Staples Center, for $175 million in December. The next month, Shanghai developer Greenland Group purchased the 6.3-acre Metropolis site at the northwest corner of Eighth and Francisco streets.