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Charles Dunn Company, one of the largest full-service regional real estate firms in the Western United States, has completed the $9 million sale of a stalled two-building, 152,127 square foot affordable housing conversion project located at 808 S. Spring Street in Los Angeles. The project, called Chinatown Metro Apartments, which is adjacent to Chinatown and a Metro Rail station, will be converted into affordable housing units under the City of Los Angeles’ Adaptive Reuse Ordinance.

Albert Shilton of Charles Dunn Company represented the buyer, Meta Housing, Inc., a developer of affordable housing projects, who plans to complete the conversion of a former office property to 123 affordable housing units. KOR Group sold the property as a short sale through the lender, Bank of America.

Meta will start work on completing the project by the end of the year and anticipates opening Chinatown Metro Apartments in early 2013.

Charles Dunn Company has been an integral part of the transactional side of the project since 2004 when John Anthony of Charles Dunn Company listed the building and Albert Shilton represented the buyer, KOR Group, who intended to convert the building under the City’s Adaptive Reuse Ordinance into live/work lofts.

Beginning in 2004, the building underwent a complete interior demolishment. KOR conducted a million dollar lead and asbestos abatement. Due to parking issues and a turn in the market, KOR decided to sell the property in 2008.

“Meta Housing proceeded to secure financing for the project, but due to state budget cuts was not able to secure funding through tax credits, LAHD the CRA and other sources,” said Shilton. “It took 2 1/2 years to pull the funds together. However, during the term of the escrow KOR and its equity partner where overloaded by carrying costs. Eventually, KOR’s lender, Bank of America worked to conduct a short sale which closed mid-September.”

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