Real Estate

REDA Buys Culver City Plaza for $49M, Plans Residential Hub

REDA Residential acquires Fox Hills Plaza for $49M, signaling a shift towards residential redevelopment amid housing demand.

By Tal Alexander

4/3, 17:34 EDT

Key Takeaway

  • REDA Residential acquires Fox Hills Plaza in Culver City for $49M, planning to redevelop it into residential units.
  • The purchase price represents a decrease from the previous sale at $56M, indicating a potential market adjustment.
  • The redevelopment could introduce hundreds of homes near the 405 Freeway and Westfield Culver City Mall, enhancing local housing options.

Culver City's Next Chapter: A $49M Transformation

In a significant move that underscores the evolving landscape of urban development, REDA Residential, in partnership with an undisclosed investor, has acquired the Fox Hills Plaza in Culver City for $49 million. This acquisition not only marks a pivotal shift from commercial to residential use but also highlights the growing trend of reimagining suburban spaces to meet the pressing demand for housing. The 68,000-square-foot shopping center, purchased at $721 per square foot or $7 million per acre, is poised for a transformative redevelopment into a residential hub, potentially adding hundreds of units to the Culver City housing market.

A Strategic Acquisition Amidst a Housing Crunch

The deal, facilitated by brokers from Ally Commercial Real Estate and CBRE Group, reflects a strategic investment in a prime location near the 405 Freeway and across from Westfield Culver City Mall. The previous owner, Bristol Parkway Propco, had acquired the property in 2022 with similar redevelopment aspirations that did not materialize. REDA Residential's plan to convert the 1973-built shopping center into a residential complex is a response to the acute need for more housing in urban and suburban areas alike. This move is indicative of a broader trend where developers are seizing opportunities to repurpose commercial properties amidst changing consumer behaviors and a pressing urban housing shortage.

The Implications of Urban Redevelopment

The acquisition and planned redevelopment of Fox Hills Plaza come at a time when cities across California are grappling with housing shortages and the need for sustainable urban planning. By converting a nearly half-century-old shopping center into a residential complex, REDA Residential is not only contributing to the alleviation of the housing crisis but also promoting a shift towards more mixed-use, community-centric urban environments. This project, if approved, could serve as a model for similar developments nationwide, demonstrating the potential of adaptive reuse in addressing housing needs while revitalizing underutilized spaces.

A Vision for Culver City's Future

REDA Residential's announcement has been met with enthusiasm, as articulated by Nate Johnson, co-founder and managing principal of REDA Residential, who emphasized the project's alignment with the company's commitment to creating spaces that enrich communities. This redevelopment initiative represents a significant investment in Culver City's future, promising to deliver a residential complex that not only meets the growing demand for housing but also enhances the local urban fabric. As cities continue to evolve, projects like the Fox Hills Plaza redevelopment are crucial in shaping sustainable, livable urban landscapes.