top of page

940 Second Street, Los Angeles, CA 90012


940 Second Street, Los Angeles, CA 90012


Arts District


Built in 1905, the structure originally served as a storage barn and warehouse for Spreckels Brothers, a cane sugar distributor. Sugar was unloaded from trains, transferred to horse drawn carriages, and distributed throughout the city.


The original structure was maintained while reconfiguring the interiors to make the most of the dramatic space within. 940 E 2nd Street preserved the building’s natural elements that reflect the character and history of the neighborhood.


80,000 gross/ 57,646 net sellable


38 total 3-story units (ranging in size from 1,285 sf to 2,603 sf)


2 bedrooms / 2.5 bathrooms / Private deck / Hardwood floors / Exposed brick walls / Custom monumental entry doors / Skylights + high clerestories / European kitchens / Private parking space in secure garage and adjacent lot


Restoration and conversion of a 100-year old building / Thermal chimney natural ventilation / Operable skylights / Low and non-VOC paints / High efficiency heating and air conditioning systems / Sun shading / Eco-friendly insulation


2011 – AIA Award for “Excellence in Design”

2012 – “Project of the Year”, Los Angeles Downtown News

2012 – “Best Multifamily Redevelopment in Los Angeles”, LABJ

2012 – “Gold Nugget Grand Award in the Best Adaptive Reuse”

2012 – “Best Residential Project” - Downtown Roses & Lemon Awards


Located on the eastern edge of Downtown Los Angeles in an area known as the Arts District, 940 E 2nd Street was built as a warehouse by the Spreckels Brothers in 1905 to store sugar beets. The Borman Group purchased the 33,000 square foot building in 2006 with the vision to redevelop the building into new, high-end luxury townhomes for a new profile of buyer consisting of young professionals, married couples and empty nesters.

At the time of the acquisition the building was an underutilized and dilapidated existing brick structure and presented numerous development hurdles including civic, legacy tenants, an unproven neighborhood, parking, zoning, utility and financing.

Creatively, the goal was to increase the number of parking spaces and overall square footage of the building by utilizing the existing high volume ceilings. The design resulted in a collection of 38 live / work townhome lofts that preserved historic architectural details while adding modern interiors with high level finishes. All units were 2 bedrooms and 2.5 baths occupying three levels with open floor plans, abundant natural light, patios and parking. The overall experience is one of privacy, security and convenience in a manner unparalleled by any Downtown residence.

In 2009 the building was 70% complete when the construction lender was closed by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation and construction stopped. Through a new structure and recapitalization in 2010 the project resumed construction and was completed in 2011 winning numerous awards including “Project of the Year” by Los Angeles Downtown News and “Excellence in Design” by the AIA.

The units were sold as condominiums through a series of marketed phases to control absorption and pricing. The redeveloped building, 940 E 2nd Street, out-performed the entire downtown marketplace by an average of approximately 25% in terms of overall price point and on a price per square foot basis. Subsequent resales have all transacted at market highs.


Total Expenses: $14,436,106

Net Sales: $23,247,467

Net Profit: $8,811,361

Unlevered Return: 1.6x

Unlevered IRR: 29.96%

bottom of page