Simon Baron Launches West Coast Expansion with Hotel Ground Lease
- May 23, 2016
Los Angeles—Simon Baron Development acquired the 99-year ground lease on Stay on Main Hotel from 248 Haynes Hotel Associates LLC for roughly $15 per square foot per year, a representative of the company told Commercial Property Executive. The 600-key hotel is the New York-based developer’s first project in California and it marks the beginning its expansion plan on the West Coast. Simon Baron was represented by Ben Reznik of Jeffer Mangels Butler & Mitchell LLP in the deal, and by David Swartz of CGS3 in the ground lease.
The 170,000-square-foot property is located at 640 South Main St. in Downtown Los Angeles, in the heart of the city’s Historic Core district. The new owners plan a capital modernization of the building so that it blends in with the character of the area. “We are very excited about our expansion into California, and more specifically Downtown LA which is transforming into a major developed area and undergoing a renaissance. The historic neighborhood that the property is located in is quickly becoming the trendy locale in Downtown and we are looking forward to contributing to that,” said Matthew Baron, president of Simon Baron.
Upscale dining and shopping facilities are located near the hotel. Visitors also benefit from easy access to popular sights in the area like LA Live, Hollywood or the Fashion, Toy and Jewelry districts. Public transport is also within reach.
The area surrounding the Stay on Main Hotel is transforming rapidly through the many conversion projects for existing commercial buildings and plans for ground up high-rise development. However, the historical character of the district is preserved. “This is a very unique property that delivers the opportunity to revitalize a historic building and improve the neighborhood surrounding it,” said Jonathan Simon, founder & CEO of Simon Baron.
Simon Baron, developer and owner of commercial and residential real estate, has limited its footprint to New York and the surrounding areas. This is the company’s first property on the West Coast.
Image courtesy of Stay on Main Hotel