CIM Group Completes Acquisition of Downtown Property From Shuwa

CIM Group, which has played a major role in the revival of Santa Monica’s Third Street Promenade, last week said it had completed the purchase of a 7.2-acre property in downtown Los Angeles, where the firm plans to build a mix of housing, commercial space and a full-service supermarket.

The Los Angeles-based development firm purchased the property--spanning three blocks bounded by 8th and 9th streets and Grand Avenue and Figueroa Street--for an undisclosed amount from Shuwa Investments Corp.

Shuwa had listed the property for about $40 million, brokers familiar with the deal said. The Japanese-owned real estate firm purchased the property, which includes the former Southern California Gas Co. headquarters, for more than $75 million in 1987. Japanese investors were paying top dollar for U.S. real estate at the time.

CIM’s plans for the property include new construction and renovation of the old gas company building into loft-style housing.

The parcel also will have room for downtown’s first full-service supermarket in decades. Civic and business leaders have said that a full-service supermarket would play an important role in attracting more residents and development to downtown.

The Ralphs supermarket chain said Shuwa property was one of three parcels it was considering for a downtown outlet.

Ralphs real estate manager Greg Lukowski said Friday that his firm is in “active negotiations” with CIM over the supermarket site but that no deal has been reached. “It’s one of our top sites,” he said.