Just before a significant Californian housing law comes into force on 1st July, two prominent real estate companies have announced a partnership to create thousands of new homes in Los Angeles. Global investment firm Kennedy Wilson and Jamison, known as L.A.'s leading adaptive reuse company, launched a joint venture on Tuesday. The aim is to develop 4,000 affordable housing units across the city.
The partnership is specifically between Ardent Residential, Jamison's new affordable housing subsidiary, and Vintage Housing, Kennedy Wilson's affordable housing development partnership. The new joint venture will begin the conversion of the former L.A. World Trade Centre in Downtown L.A. in August. The 400,000 square-foot office complex at 350 South Figueroa Street will be transformed into a project named Sky Castle, which is set to comprise 512 affordable housing units, including one, two and three-bedroom apartments.
The first phase of the project involves converting the mezzanine levels into 241 units for families whose income is 30 to 80 per cent of the area's median income. As part of the second phase, the office tower above will be converted into 271 affordable housing units.
California's SB 79 law comes into effect on 1st July. It is intended to oblige city administrations to approve more multi-family housing developments near public transport and to promote projects that can be up to nine storeys high. However, L.A.'s lawmakers have decided to delay full implementation until 2030. Until then, new SB 79 projects will be limited to just four storeys and significantly fewer plots of land.
Jamison stated that it manages 18 million square feet of commercial office, retail, medical, and multi-family properties across Southern California. Since 2014, the company has added over 8,000 residential units, with another 2,000 units currently under construction. Kennedy Wilson has USD 36 billion in assets under management.
The initiative demonstrates both companies' commitment to addressing the need for affordable housing in Los Angeles. By converting existing structures, they contribute to the sustainable development of urban infrastructure and leverage expertise in adaptive reuse to create much-needed housing solutions. This represents an important step towards tackling the housing shortage in the metropolitan area.
