DEVELOPMENT Ideal Timing For Adaptive Reuse Excess commercial space combined with a shared commitment to sustainability and equality makes the West ground zero for transformative developments. Nellie Day N othing is certain following this pan-demic, but many commercial real es-tate experts believe there will be a solid amount of office, retail and hospitality space up for the taking in the near future. Fortunately, much of that space may not stay vacant for long as some developers are eager to convert these empty buildings into affordable housing. “Adaptive reuse is going to become more and more ubiquitous as the extent of the pandemic’s impact is measured,” says Richard Rubin, CEO of Repvblik, a Los Angeles-based development company that specializes in turning distressed properties into affordable housing. “Close to 80,000 retail spaces are predicted to close nationally by 2026. J.P. Morgan says 10 per-cent of its office footprint will be reduced going forward based on people working from home, and 30,000 hotels are in the process of closing nation-ally.” Repvblik is in the pro-RICHARD RUBIN cess of purchasing dis-CEO, tressed hotels with the Repvblik intention of rolling out 4,000 affordable apartment units annually over the next five years. Rubin notes the West Coast is one area he hopes to target. John Arnold, a partner at architecture firm KFA in Los Angeles, believes the Western U.S. will be an attractive area for many affordable housing and adaptive reuse enthusiasts for a few different reasons. “The appeal of adaptive reuse is that it doesn’t need zoning approvals in a city like Los Angeles, which is very progres-sive, especially when it comes to its building and fire departments,” he says. “Residents can’t object to the building be-cause it’s already there. Many office buildings were built since the mid-century, so they have way more parking than they need. Plus, people are starting to feel like ‘it’s my duty to support sustainability and more affordable housing.’” Arnold notes seismic reinforcement can be an issue in earthquake-prone areas, but that the de-sire to preserve history while fostering econom-ic regeneration is a win-win for both residents and municipalities. “A lot of cities want to engage in adaptive re-Built in the 1960s, 888 Tower in Santa Ana, Calif., now functions as workforce housing, with the first two floors featuring live-work units zoned to attract workers from local commercial businesses. use, and a few are using LA as their templates,” he continues. “Los Angeles figured this out 20 years ago when it put down a series of rules that codified certain aspects of existing buildings, making them much easier to approve for adap-tive reuse. It would be great if all cities would follow suit.” Although many official city policies may be a work in progress — and the fallout from COVID-19 hasn’t yet been fully realized across the commercial real estate sector — there are still a variety of adaptive reuse projects mak-ing their way through the approval process and coming to fruition throughout the Western U.S. International Airport (LAX) and the iconic Cap-ital Records Tower. The building was acquired by Alliant Strategic through its Alliant Strategic Opportunity Zone Fund I for $54 million this past November. The studio to two-bedroom units will target workforce housing residents, or those making 100 percent of the area median income. The first two floors will contain live-work units specifi -cally zoned to attract workers from local com-mercial businesses. Basement amenities will in -clude a fitness center, yoga studio, internet café and common areas with free Wi-Fi. The office property, located at 888 N. Main Street, was brokered by Lineage Asset Manage -ment and Brookwood Group. “888 Main is a generational asset and a rare adaptive reuse investment opportunity in Or-ange County,” says Jeffrey Gould, founder of Lineage Asset Management. “This property presents a unique template for reimagining and adapting an older, 10-story office building into a much-needed 148-unit housing project that is www.REBusinessOnline.com High-Rise Office Conversion in Orange County A 148-unit high-rise office building in Santa Ana, Calif., is the first adaptive reuse project to bring workforce housing to Orange County. The property, known as 888 Tower, was origi-nally built in the 1960s by renowned architect Wilton Beckett, who also designed Los Angeles 18 | Western Affordable Housing Business | May/June 2021