- Jamison’s latest Koreatown project will repurpose a building bought in 2005, reflecting a pivot from office to residential use to meet housing needs.
- Converting offices to apartments costs about $400 PSF, significantly less than the $800 PSF for new construction.
- High borrowing costs, regulatory hurdles, and LA’s “mansion tax” have dampened enthusiasm for new developments.
According to Bloomberg, Jamison is capitalizing on LA’s demand for multifamily housing through strategic office-to-apartment conversions. The developer, one of LA’s largest apartment landlords, is now setting its sights on converting a Koreatown office tower.
Over the past decade, Jamison has become a leader in office-to-apartment conversions in Los Angeles. The multifamily firm manages 18 MSF of commercial property, with a substantial portion converted from office to residential use since 2014.
Look Inside
The Koreatown conversion project at 3325 Wilshire Blvd. is set to deliver a mix of studio, one-, and two-bedroom apartments, meeting diverse tenant needs and preferences. These units are expected to be move-in ready within 18–24 months, providing modern living spaces in a prime urban location.
The development is designed to appeal to renters seeking lifestyle amenities that go beyond the basics. Residents will have access to a state-of-the-art gym and yoga studio for fitness enthusiasts, a karaoke room for social gatherings, and a golf simulator (so Korean).
Additionally, an outdoor deck is planned to offer a communal space that merges relaxation with city views, enhancing the overall living experience. These features align with Jamison’s strategy to provide high-quality, amenity-rich housing that attracts a broad range of renters in a competitive market.
Zooming Out
Los Angeles’ office market faces substantial challenges, with the office vacancy rate reaching nearly 38% as of Q3, a sharp decline in demand, and depreciating property values. The city’s high vacancy rates are compounded by economic pressures and changing work patterns, which have cut into the demand for traditional office spaces.
Despite these difficulties, housing in LA remains in short supply—and is very expensive. The median rent in the metro area has decreased 3.6% YoY but still stands at $2,775 per month, a price that surpasses many other major U.S. cities, including Miami and San Francisco.
This persistent housing cost underscores the critical need for adaptive reuse projects like Jamison’s office-to-apartment conversions, which help bridge the gap between the excess of office space and the urgent demand for residential units.
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Conversion Appeal
Jaime Lee points out that older office buildings with smaller floor plates, generous natural light, and well-placed windows are particularly well-suited for conversion to residential use. These architectural features make it easier to reconfigure layouts for modern apartment living while preserving elements that enhance tenant comfort.
Jamison’s strategy taps into this potential, focusing on properties that can be effectively repurposed to maximize space and functionality. By choosing properties that are adaptable, Jamison navigates LA’s complex regulatory environment, which poses significant challenges due to stringent building codes, high development costs, and the city’s political climate.
