Downtown Los Angeles Mixed-Use Complex The Bloc Returns to Market with Approved Development Plans

The Bloc, a prominent mixed-use complex in downtown Los Angeles, has been listed for sale, signaling potential shifts in the commercial property market. Located at 7th and Flower streets, the property encompasses an office skyscraper, a retail center, and the Sheraton Grand hotel, which will be sold separately. The current owners, National Real Estate Advisors, are divesting the 1.2-million-square-foot office and retail components.

Originally known as Macy’s Plaza, the complex underwent a significant $250 million renovation led by developer Wayne Ratkovich, transforming it into an outdoor shopping destination. A key aspect of the current offering is its future development potential. The property has secured city approvals for a new 41-story apartment or condominium tower atop its existing garage, as well as permission for revenue-generating digital signage. The recently vacated Macy's anchor space is also identified as a major opportunity for a new owner. This sale occurs as the downtown Los Angeles office market shows signs of bottoming out, with recent transactions reflecting deep discounts and a reported increase in positive leasing momentum.