Bucking trend, downtown building will convert to office.

JADE Enterprises Inc. has purchased the 412,000-square-foot office building at 888 S. Figueroa St. for $51 million, or $124 a foot, according to sources familiar with the transaction.

The downtown L.A. real estate investment firm, with holdings that include several properties in the Garment District, made a deal directly with 888 S. Figueroa's owner, South Park Associates Inc., whose principals reside in the Philippines.

Calls seeking comment from Jade principal Albert Taban weren't returned and a principal from South Park Associates couldn't be reached.

While the building is listed as Class-A office space, downtown leasing brokers said South Park Associates didn't invest much in capital improvements in the 17 years it owned the building.

As a result, Jade is planning a multi-million dollar renovation of the building, focusing on upgrading the property's common areas, said a source.

In recent years Jade has become active in the areas surrounding downtown's South Park neighborhood. Earlier this year, the Los Angeles Times reported that the firm bought the 13-story Case Hotel at 1106 S. Broadway and planned to convert it to offices.

The building, which is 73 percent occupied, appreciated less than 10 percent under South Park Associates' ownership. South Park Associates bought the building in June 1987 for $46.4 million, or $1 13 a foot, according to the Los Angeles County Assessor.

The area around the office tower is undergoing rapid change, with apartment and condominium buildings under development and new businesses setting up shops to serve new residents. Three blocks away, the owner of the Staples Center is nearing construction of a $1 billion entertainment and retail center that will surround the arena.

Land Grab 

Regent Properties has paid Cedars-Sinai Medical Center more than $17 million for a 2.5-acre parcel near the intersection of San Vicente and Beverly boulevards, according to sources familiar with the transaction.

The 110,000-square-foot parcel, currently used as surface parking lot the hospital, is zoned for multi-family housing. If Beverly Hills-based Regent developed a project that conformed to zoning, it would mark a departure for a firm that traditionally develops retail projects.

Residential developers estimated that the site could hold as many as 150 units.

"It's a nice location," said Larry Bond. chairman at Santa Monica-based Bond Cos., which built the Sunset + Vine mixed-use project in Hollywood. "You don't get much more of a prime location than that."

Jeffrey Dinkin, managing partner at Regent Properties, did not return calls. A Cedars-Sinai spokeswoman confirmed the deal but wouldn't comment on price.

The hospital was represented internally. Regent was represented by Studley Executive Vice President Mark T. Sullivan, who declined comment.

Lakewood Control

With its purchase last week of a 661-unit Lakewood apartment complex for $68 million, Kennedy Wilson Inc. continues to snap up large apartment buildings throughout Southern California.

The Beverly Hills-based real estate investment firm purchased the 64-building complex scattered on 12.5 acres from two owners, Win-Max Manor West LP and Oliva East LLC.

Ronald Z. Harris, vice president of investments at Marcus & Millichap, represented both sides in the deal.

The development, built by Ben Weingart and Mark Taper in the late 1950s, accounts for 20 percent of Lakewood's apartment stock.

Rents in Lakewood have climbed more than 30 percent since 1996, 11 percent in the last year, to average $1,095, according to apartment research firm RealFacts Inc. By that measure, rents in the complex, where apartments average $930 a month, have room to grow.

"Lakewood is a proven market with lots of demand," said Bob Hart, director of Kennedy Wilson's West Coast acquisitions group, who said the firm wants to raise rents by 25 percent during the next three years.

Though the complex's prior owners refurbished more than 400 of the units recently, Kennedy Wilson plans to spend another $3 million to finish the job and upgrade the buildings' appearance and facilities, Hart said.

Of the purchase price, Kennedy Wilson and partner Wachovia Securities is spending $30 million to pay off existing loans from Fannie Mae, along with a prepay penalty, Harris said.

The purchase comes on the heels of a $75 million deal Kennedy Wilson and Hanover Financial made for the 624-unit Mountain Vista complex in San Bernardino.

Hart said Kennedy Wilson looks to buy worn apartment properties and renovate them to achieve higher tents. "We're buying B and C level stuff that we upgrade a level or two," Hart said. "We try to raise the level through rehab and positioning."

Burbank Sell-Off

An investor group has picked up a fully leased Burbank office building from Douglas Emmett & Co. for $39.5 million, according to sources familiar with the deal.

The 116,000-square-foot building at 2901 W. Alameda Ave. is leased to Liberty Livewire, a division of Englewood, Co.-based Liberty Media Group, which has 12 years remaining on its lease.

The company signed a 15-year renewal in 2002, taking an additional 18,689 square feet at the seven-story building--known as the Alameda Media Building--in a deal valued at $40 million.

Madison Partners Principal Bob Safai represented the investor group calling itself 2901 Alameda Associates LLC. Safai described the ownership as a "group of high-net worth individuals who syndicate transactions" and wish to remain anonymous.

Because the building is subject to a long-term lease, "it's like clipping coupons," Safai said. "It presents a tremendous cash-flow deal for the buyer."

Douglas Emmett was represented by Kevin A. Crummy and Steven L. McKenzie, managing directors at Eastdil Realty. They didn't return calls seeking comment.

Staff reporter Andy Fixmer can be reached at [phone], ext. 263, or at [e-mail].