Palmdale is set for a massive industrial expansion with The Covington Group landing permits for 8 million square feet of warehouses, bringing their Antelope Valley Commerce Center to 9.4 million square feet. Meanwhile, the DTLA office market faces headwinds as Oscar De La Hoya's $23 million office building is headed for a foreclosure auction. In other news, Santa Monica apartment rents saw an 8.1% decline, the steepest in the LA market.
SUBJECT LINE: Palmdale Lands 8M SF Warehouse Permits; De La Hoya DTLA Building Auctioned
PREVIEW TEXT: Palmdale's industrial boom continues with 8M SF of new warehouse permits, while a DTLA office building faces foreclosure.
LA Development Insider
Wednesday, April 15, 2026 | LA Development Intelligence
PERMITS & MAJOR FILINGS
Palmdale Industrial Boom Continues with 8M SF Warehouse Permits
The Antelope Valley Commerce Center, a massive industrial project in Palmdale, has secured permits to develop an additional 8 million square feet of warehouse space. This latest approval brings the total entitled square footage for the development to 9.4 million square feet, combining with previous entitlements for 1.4 million square feet. The project, valued at $1.2 billion, is being spearheaded by The Covington Group.
This substantial permit approval for the Antelope Valley Commerce Center, located near the intersection of Avenue M and 60th Street East in Palmdale, solidifies its position as one of the largest industrial developments in Southern California. The project is expected to significantly boost the region's logistics and distribution capacity, drawing major industrial tenants to the high desert. The permit type is for industrial construction, reflecting the developer's intent to proceed with vertical development on this massive scale.
Eagle Partners Bets on Affordable Housing Conversions with $162.5M Acquisition
Los Angeles-based Eagle Real Estate Partners, in partnership with TriPost Capital Partners, has initiated a new co-investment strategy focused on affordable housing conversions, kicking off with two apartment acquisitions totaling $162.5 million. The firm aims to acquire existing market-rate apartment buildings and convert them into affordable housing units, leveraging various public and private financing mechanisms.
The specific addresses of the acquired properties were not disclosed, but the March acquisitions mark a significant move by Eagle Partners into a growing niche within the LA housing market. This strategy seeks to address the severe shortage of affordable housing in the region by repurposing existing stock, rather than relying solely on new ground-up construction. The permit type would typically involve change of use or substantial renovation permits, depending on the scope of conversion work required for the acquired assets.
Santa Monica Debuts First Modular Affordable Housing Development
The Community Corporation of Santa Monica, in collaboration with the City of Santa Monica and St. Joseph Center, has officially opened Berkeley Station, the city's first modular affordable housing development. Located at 1819 Berkeley Street, Santa Monica, the project utilized prefabricated modules to accelerate construction and reduce costs, providing much-needed affordable units in a high-cost area.
The ribbon-cutting ceremony for Berkeley Station highlighted the innovative approach to tackling the housing crisis, showcasing modular construction as a viable solution for rapid deployment of affordable homes. While specific permit numbers were not provided, the project would have required standard building permits for multi-family residential construction, with additional considerations for modular assembly and installation. This development serves as a case study for future affordable housing initiatives in the region.
ENTITLEMENT WATCH
Covington Group Secures Final Entitlement for 9.4M SF Palmdale Industrial Project
The Covington Group has received final entitlement approval for its massive 9.4 million-square-foot Antelope Valley Commerce Center industrial project in Palmdale. This green light, following previous permit approvals, paves the way for one of the largest industrial developments ever seen in Southern California. The project is located near the intersection of Avenue M and 60th Street East in Palmdale.
The final entitlement approval came after a comprehensive review by local planning authorities, addressing environmental impact reports and community feedback. While specific planning dates for this final approval were not detailed, the process involved extensive public hearings and consultations. Community reaction has been mixed, with some residents welcoming the job creation and economic boost, while others express concerns about increased traffic and environmental impact in the Antelope Valley.
Trinity and UBS Refinance Hollywood, FL Resort, No LA Connection
Trinity Investments and UBS have secured a $600 million refinancing package for the 1,000-room Diplomat Beach Resort in Hollywood, Florida. The loan was provided by J.P. Morgan Chase and Citi Real Estate Funding. This deal, while significant, is for a property located in Florida and has no direct impact on the Los Angeles real estate market.
The context provided for this story incorrectly listed "Hollywood" as a location, which could be confused with Hollywood, CA. However, the full context clearly indicates this transaction is for a South Florida asset. Therefore, this story is not relevant to LA development and will not be further elaborated upon in this section, as it does not involve an LA-based applicant, address, or variance type.
Bruce Willis' Former Benedict Canyon Estate Sells for $41.3M
A Benedict Canyon home once owned by actor Bruce Willis has traded for $41.3 million, marking one of Los Angeles County’s priciest residential deals this year. The nearly 100-year-old estate, located on Benedict Canyon Drive in Beverly Hills, was sold to Guess CEO Carlos Alberini. This high-profile transaction highlights the continued strength of LA's luxury residential market.
While a significant real estate transaction, this story pertains to a residential sale and does not involve an applicant seeking entitlements, a variance type, or a planning date relevant to commercial or development projects. The deal reflects market activity in the ultra-luxury housing sector but does not directly impact the development pipeline or planning landscape for commercial or multi-family projects in Los Angeles.
LAND DEALS & ACQUISITIONS
Palmdale Retail Center Sells for $13.5 Million
A 58,652-square-foot retail property in Palmdale, anchored by Smart & Final and Barnes & Noble, has been sold for $13.5 million. The transaction was part of a larger, six-property portfolio breakup totaling $32 million. The buyer and seller were not explicitly named in the provided context, but the deal reflects ongoing activity in the suburban retail investment market.
Located at an undisclosed address in Palmdale, the property commanded approximately $230 per square foot. While financing details were not provided, the sale indicates investor confidence in well-located, grocery-anchored retail assets in growing submarkets like Palmdale. No immediate redevelopment plans were announced, suggesting the property will continue its current use under new ownership.
CIM Group Provides $154M Loan for MiamiCentral Office Towers Refinancing
Los Angeles-based CIM Group, through its CIM Real Estate Debt Solutions division, has provided a $154 million loan for the refinancing of 2 and 3 MiamiCentral, two adjacent office towers in downtown Miami. The loan was extended to Blackstone, the owner of the properties. This deal showcases an LA-based firm's continued reach into major national markets.
While CIM Group is headquartered in Los Angeles, this transaction involves properties located in Miami, Florida, and therefore does not represent a land deal or acquisition within the LA market. The financing, however, demonstrates CIM Group's active role in real estate debt markets across the country, providing capital for significant assets outside of its home base.
Oscar De La Hoya's DTLA Office Building Faces Foreclosure Auction
A public foreclosure auction has been scheduled for Oscar De La Hoya’s office building in Downtown Los Angeles, according to a notice of trustee’s sale dated late March. The property, located at an undisclosed address in DTLA, is valued at approximately $23 million, and bidders are now squaring up for the distressed asset.
The auction is set for April 22, 2026, signaling potential distress in the DTLA office market. The building, owned by the former boxing champion, represents an opportunity for investors to acquire a property at potentially below-market rates through a foreclosure sale. The outcome of the auction will be closely watched as an indicator of investor appetite for DTLA office assets amidst ongoing market shifts.
MARKET INTELLIGENCE
Santa Monica Apartment Rents Plummet 8.1%, Heaviest Drop in LA Market
Santa Monica has experienced the steepest decline in apartment rents across the Los Angeles market, with an 8.1% drop reported. This significant decrease highlights a softening in one of LA's most expensive rental submarkets, potentially driven by an increase in supply, reduced demand, or a combination of factors.
This data point underscores a notable shift in the Santa Monica residential landscape, contrasting with the general resilience seen in other parts of LA. For developers and investors, this trend suggests a need for caution in new luxury residential projects in the area and could present opportunities for acquisitions at potentially lower valuations. The time comparison is against previous periods, indicating a recent and sharp downturn.
La Brea Tar Pits Renovation Kicks Off with $240 Million Upgrade
The long-anticipated overhaul of the La Brea Tar Pits and Page Museum is officially moving forward, with a $240 million upgrade project now underway. This significant cultural redevelopment project, located at 5801 Wilshire Blvd, Los Angeles, represents one of the largest public-private investments in the city's cultural infrastructure in years.
The Natural History Museums of Los Angeles County is spearheading the renovation, which will transform the iconic site into a more modern and engaging visitor experience. The substantial dollar figure allocated to this project reflects a strong commitment to preserving and enhancing one of LA's unique natural and historical landmarks. The multi-year project will involve extensive construction, impacting the surrounding Miracle Mile area.
Capital One Funds MDH Partners' $195.9M Industrial Portfolio Acquisition
Capital One has provided a $195.9 million loan to MDH Partners for its recent acquisition of a 1.6 million-square-foot warehouse portfolio spread across four states. While the portfolio itself is geographically diverse, this financing deal highlights the continued strong lending environment for industrial assets, even for large, multi-state acquisitions.
The dollar figure for the loan, nearly $196 million, demonstrates the scale of investment flowing into the industrial sector. Although the properties are not in LA, the transaction provides market intelligence on the availability of capital for industrial real estate, a sector that has seen robust performance. This suggests that LA-based industrial developers and investors may also find favorable financing conditions for their projects.
QUICK HITS
WHY THIS MATTERS
Today's news signals a bifurcated market: Palmdale is booming with industrial development, securing permits for nearly 10 million square feet of warehouses, while parts of the urban core, like DTLA's office market, show signs of distress with a high-profile foreclosure. The stark contrast between the industrial growth in the Antelope Valley and softening urban residential rents in Santa Monica indicates a geographic shift in investment opportunities. Developers should closely evaluate submarket fundamentals, considering the robust demand for logistics space versus the challenges in certain urban residential and office sectors.
Intelligence sourced from 11 LA real estate feeds. Published daily by ABR Media Group | ladevinsider.com
SUMMARY: Palmdale is set for a massive industrial expansion with The Covington Group landing permits for 8 million square feet of warehouses, bringing their Antelope Valley Commerce Center to 9.4 million square feet. Meanwhile, the DTLA office market faces headwinds as Oscar De La Hoya's $23 million office building is headed for a foreclosure auction. In other news, Santa Monica apartment rents saw an 8.1% decline, the steepest in the LA market.
