L.A. World Trade Center to Be Redeveloped Into 512 Affordable Apartments
$200 Million ‘Sky Castle’ Project to Help Ease Housing Shortage
The aging L.A. World Trade Center office building in downtown Los Angeles will be transformed into a 512-unit affordable apartment complex under a $200 million redevelopment project aimed at expanding housing for moderate- and low-income residents.
Korean American real estate developer Jamison, in partnership with Kennedy Wilson, announced Monday that the project will serve as the first of approximately 15 office-to-residential conversions planned over the next five years. Together, the developments are expected to create about 4,000 affordable housing units between downtown Los Angeles and the Interstate 405 corridor.
The first project involves converting the 10-story L.A. World Trade Center, originally built in the 1970s, into a residential community named Sky Castle, which is scheduled to open in early 2028.
According to the developers, monthly rents are expected to begin at $937 for one-bedroom apartments, with two-bedroom units renting for about $1,100 and three-bedroom apartments for approximately $1,300. The apartments will be reserved for households earning between 30% and 80% of the Area Median Income (AMI).
Residents will have access to amenities typically found in newly constructed apartment communities, including a fitness center, resident lounge, and co-working space. The building’s rooftop, currently home to six tennis courts, may also be converted into pickleball courts.
Developers said repurposing older office buildings is significantly less expensive than constructing new residential buildings. They also noted that recent policy changes by the City of Los Angeles, including streamlined approvals and relaxed regulations for office-to-housing conversions, have improved the financial feasibility of such projects.
Garrett Lee, chief executive officer of Jamison, said government incentives have played a key role in encouraging private developers to invest in affordable housing.
“Government subsidies, zoning flexibility, and streamlined permitting are helping accelerate the delivery of affordable housing,” Lee said. “We plan to continue expanding office-to-residential conversion projects to address Los Angeles’ ongoing housing shortage.”
The Sky Castle redevelopment is expected to become one of the city’s largest adaptive reuse projects and reflects a growing effort to convert underutilized office buildings into much-needed housing as Los Angeles continues to grapple with high housing costs and limited residential supply.
