Trendy downtown apartment complex sold out of foreclosure

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A former Holiday Inn on the western edge of downtown Los Angeles that was converted to a trendy apartment complex known as The Flat has been purchased out of foreclosure by local investors for more than $20 million, making it one of the largest real-estate-owned sales of the year in L.A.

The property at 750 Garland Ave. was built in 1968 as a 410-room hotel. In the mid-2000s after a residential renaissance was well underway downtown, developers converted the property a few blocks west of the Harbor Freeway into 205 loft units that rented for $1,200 a month. Helping bring attention to the complex was Blue Velvet, a highly designed upscale restaurant on the premises.

Over the last year, several anonymous online reviews of The Flat apartments grew scathing, complaining about a lack of maintenance, parking problems and other perceived ills. Chinatrust Bank USA foreclosed on the complex this summer.

The building was 93% occupied, however, when the bank sold it Sept. 30, according to real estate brokerage Grubb & Ellis. SA Properties Holdings, a Los Angeles real estate investor represented by Managing Partner Sonya Moreno, paid cash for The Flat. The exact sales price was not disclosed. ‘Having a buyer with the ability to quickly close all-cash on this complex asset was key to our success,” said Phillip Sample of Grubb & Ellis, which represented the bank.

-- Roger Vincent