Project, With Views of SoFi Stadium, To Host Functions Before Sports and Concert Events
A medical office at 336 E. Hillcrest Blvd. in Inglewood, California, is morphing into apartments, a rooftop events space and a ground floor restaurant. An advertising banner will ring part of the property's second floor. (Forbix)
Perhaps the best way to understand the changes happening in Inglewood, California, is to take a drive down Nutwood Street. There low-rise homes and commercial properties that have stood for decades are now next to a building wrapped in black webbing, shrouding the construction work inside.
The six-story structure, previously a medical office, is being converted into something new for the neighborhood 11 miles southwest of downtown Los Angeles: luxury apartments, a high-end restaurant and a rooftop events space.
The investment comes on the heels of the new SoFi Stadium and the Intuit Dome sports venues, which are attracting a financial infusion across the city of Inglewood. For years before the arenas, Inglewood was largely skipped over by real estate investors for more affluent, and job-rich, areas of Los Angeles County.
The project also is emblematic of a nationwide trend of unwanted offices morphing into different property types, including housing and industrial space.
SoFi Stadium can be seen from the future window of an apartment unit under construction at 336 E. Hillcrest Blvd. in Inglewood, California. (Jack Witthaus/CoStar)
On Nutwood Street and Hillcrest Boulevard, developers Forbix Capital and Massie Capital Management are nearing completion on the transformation of the former 62,000-square-foot Hillcrest Medical Center that's now wrapped in the black webbing.
The $55 million project is roughly 1 mile from SoFi Stadium with backers saying the property will play host to pre- and post-game events, dinners and more in a city that lacks the space to cater to affluent concertgoers and sports fans that are now flocking to Inglewood on a
regular basis.
"You don't have a project anywhere like this in Inglewood," Forbix CEO Emil Khodorkovsky said. "There's just nowhere to go."
Building Transformation
There won't be much resemblance to the former office after construction is completed. A courtyard is turning into a sparkling pool and entertainment lounge. A rooftop is expected to become a roughly 12,800-square-foot outdoor venue capable of hosting hundreds of people. And the property's ground-floor space is being built into a high-end restaurant and coffee shop that also features valet for visitors.
Project backers say the property's liquor license will allow future patrons to be able to purchase beverages downstairs and bring them up to the roof. On the property's top floor, the developers have leased the space to Capture Studios, which will host events.
A rendering of a pool that's replacing the office's former courtyard. (Forbix)
Beyond its public-facing uses, the property is designed to host 65 multifamily units, including three penthouse spaces. These apartments offer views of the stadiums and planes taking off and landing at nearby Los Angeles International Airport. The developers are working to include fitness trainer Corey Calliet for the roughly 3,000-square-foot gym. Calliet has worked with celebrities including Michael B. Jordan.
Rent prices haven't been finalized for apartments but studios may start at $3,000 per month and one-bedroom apartments may start at $3,750, Khodorkovsky said. A price for the penthouse units hasn't been determined.
Those rents are well above the greater Inglewood multifamily market average of $1,707, according to CoStar data. However, the rents are on par with The Wesley, a luxury apartment complex that opened adjacent SoFi Stadium earlier this year in an indication of growing demand for Class A apartments in a part of Los Angeles County that saw little upscale building until recent years.
The Vision
The luxury project stands in contrast to the neighborhood where little has been built in recent decades. For example, the last multifamily building to go up within a half-mile of the project was in 1984, according to CoStar data.
Khodorkovsky initially wasn't convinced of the redevelopment vision when he was approached by commercial real estate investor Brian Massie in 2018 about converting the now 60-year-old property. So, Khodorkovsky waited a year and watched as Inglewood multifamily rents were being pushed up in response to demand generated by the new development in the city.
"We couldn't pencil it for awhile," Khodorkovsky said. "Then, eventually, when we knew the numbers made sense, Brian sold me on the idea."
The property was once a drab, six story medical office in a sleepy neighborhood in Inglewood, California. (Kevin Reece/CoStar)
Entities related to Forbix and Massie Capital Management bought the Hillcrest Medical Center for $11.5 million, or about $184 per square foot, in November 2019 before beginning construction on the project the next year.
The pandemic slowed down work, but Khodorkovsky said he expects construction to wrap up next year. Despite the redevelopment project being a first-of-its kind for the neighborhood, Khodorkovsky said he's confident his property will find success.
"They'll come," Khodorkovsky said. "You're going to have tailgate parties every weekend. Every time you have a game, they'll be on the rooftop."
By Jack Witthaus