LONG BEACH, Calif., Jan. 22, 2007 – Home buyers at downtown’s historic Pan American Lofts may be eligible for up to an $80,000 tax deduction thanks to a special agreement reached with the nonprofit Los Angeles Conservancy.
In one of the first transactions of its kind, developer Urban Pacific Builders, LLC will grant an easement on the five-story building’s ornate 1895 Beaux Arts façade to the Los Angeles Conservancy, allowing buyers of the 41 loft units to share in the tax benefits. Buyers should consult their tax advisors to determine their eligibility for the deduction, according to Scott Choppin, CEO of Urban Pacific Group, parent company of UPB.
“This building is an important part of the historic fabric of Los Angeles,” Choppin said. “We worked closely with the Conservancy to ensure that its architectural elegance would be preserved for generations to come. We are also proud of the way we transformed a neglected landmark into an exciting, stylish alternative for urban downtown living,” he added.
Constructed in the classic Beaux Arts style, the building was originally named the Irvine Byrne Building, although in more recent years it was popularly known as the home of the “Giant Penny” store. The building, located at 249 South Broadway at the corner of Third Street, is within a few doors of some of downtown’s best-known landmarks, including the Million Dollar Theater, the Grand Central Market, and the world-famous Bradbury Building. It is listed in the National Register of Historic Places.
Linda Dishman, Executive Director of the Los Angeles Conservancy, noted that it is part of the organization’s mission to help developers take advantage of incentives to protect the city’s architectural heritage. “Tax incentives are one way of doing that, although it’s rare for developers to pass along to the benefits to buyers, and this is one of the first examples we’ve seen downtown where that is happening,” she said.
Dishman expressed her gratitude to Urban Pacific “for their interest in preserving our historic assets for the long term. This is a victory, both for the public at large – because the building is protected in perpetuity – and for the buyers,” she said.
Residents of Pan American Lofts will have convenient access to the financial district, the Music Center and Walt Disney Concert Hall, Seventh Street Marketplace and other shopping, as well as the Civic Center and other downtown attractions.
The 40 lofts range from 800 to 1,400 square feet in a variety of floor plans, including several penthouse units with their own internal mezzanines and private rooftop decks. Prices start in the $400,000s, and special financing is available through a preferred relationship with Countrywide Home Loans.
One future Pan American resident who was delighted to learn about the easement is Dan Garcia, a music mixer and record producer who also happens to be a member of the L.A. Conservancy. “Broadway is the historic main artery of the city, and I’ve always dreamed about downtown and being a part of our history as well as the current resurgence. This building, like many others in the urban core, was in danger of being lost, so it’s great that people like me can actu ally live there, and everyone else can still appreciate its beauty,” he said.
Garcia added that he looked at other downtown loft developments, “but all of them tended to feel ‘apartment-y.’ Here I’ve got six large floor-to-ceiling windows – a million-dollar view of the Million Dollar Theater, so to speak – it’s like I’ve already got artwork hanging.”
Choppin suggested that potential buyers consult their tax advisors to learn about how to qualify for the tax deduction, and to visit the project’s website, www.PanAmericanLofts.com for more information. The sales office located at 316 W. Third Street, (213) 621-9970. “Fewer than half of the lofts are still available for sale, so we urge those interested to act quickly,” he said.
In addition to Pan American Lofts, Urban Pacific currently is converting the historic 12-story Brockman Building, located at 530 W. Seventh Street in downtown Los Angeles into 76 loft homes, and is also building or converting urban loft communities in Long Beach and San Pedro, as well as in Oregon and Colorado.
Headquartered in Long Beach, Urban Pacific (www.urbanpacific.com) is a multifaceted real estate investment and development company, with core operations in urban infill and mixed-use communities, including the development of for-sale communities and the development and acquisition of multifamily communities throughout the West. The firm was founded in 1999