Newmark has completed the sale of a note secured by Topaz Tower, positioning a fully entitled adaptive reuse project in San Pedro for its planned conversion from office to multifamily use. The collateral for the note is a 12-story, 309,732-square-foot office building at 222 W. 6th St., which has approvals in place for redevelopment as market-rate housing.
The existing office tower is entitled for conversion into 246 market-rate multifamily units, shifting the property’s future use from commercial office to residential. According to Newmark, the building’s entitlements and physical characteristics support a high-rise residential program, including the ability to deliver units with coastal exposure and upper-level views.
Newmark’s capital markets team represented the lender in the note sale. The assignment was handled by Executive Managing Director Ryan Plummer, U.S. Capital Markets Co-Head Kevin Shannon, Vice Chairman Ken White, Senior Managing Director Chris Benton and Managing Director Anthony Muhlstein. The buyer of the note is 222 PV Harbor View, LLC, a private residential development firm based in Los Angeles.
Plummer described Topaz Tower as a rare example of a fully entitled coastal high-rise multifamily conversion opportunity, underscoring the combination of scale, ocean views and a clear path to execution in a submarket undergoing rapid change. With entitlements already in place, the buyer can focus on planning and implementation of the conversion rather than pursuing initial approvals.
Plans for the future Topaz Tower Apartments call for a unit mix that includes studio, one-, two- and three-bedroom residences, with an average unit size of 835 square feet. The entitlements also provide for a range of lifestyle and leisure amenities intended to support the residential repositioning of the former office asset.
Proposed amenities at Topaz Tower Apartments include a rooftop deck with a resort-style pool, ocean-view units, balconies and high ceilings. Together, these features are designed to leverage the property’s high-rise format and coastal location as it transitions from an office property into a large-scale multifamily community, subject to execution by the new note holder and future ownership structure.
