A major financing milestone is signaling renewed momentum for Los Angeles office to residential conversion projects.

Jamison Properties has secured $195 million in construction financing to convert a 33-story office building at 1055 W. 7th Street in Downtown Los Angeles into approximately 686 residential units, making it one of the largest office-to-apartment conversion projects currently underway in the city.

As office vacancy continues to challenge major urban markets, projects like this highlight how developers are repositioning underutilized office buildings into residential housing. In Los Angeles, these conversions are becoming an increasingly important strategy for addressing both downtown office vacancies and the city’s ongoing housing shortage.

A Major Downtown Los Angeles Conversion Project

The planned conversion will transform a high-rise office tower into a large residential community in the heart of Downtown Los Angeles’ Financial District.

Once completed, the redevelopment will introduce hundreds of new apartments into a neighborhood already experiencing significant residential growth. Over the past decade, Downtown LA has evolved from a primarily commercial district into a mixed-use urban neighborhood supported by thousands of newly delivered residential units.

Jamison has been one of the most active players in the Downtown Los Angeles conversion space, previously redeveloping several office buildings into residential properties throughout the city.

This latest project further reinforces that strategy.

Why Office to Residential Conversions Are Accelerating

The rise of Los Angeles office to residential conversion projects reflects broader structural changes in the real estate market.

Several factors are driving this trend:

Higher office vacancy rates
Remote work and shifting workplace patterns have left many office buildings partially vacant, particularly in older Class B and Class C properties.

Strong demand for urban housing
Downtown Los Angeles continues to attract renters seeking proximity to employment centers, transit, and cultural amenities.

Policy support for adaptive reuse
Los Angeles has long encouraged building conversions through policies designed to streamline approvals for redevelopment.

We previously explored this policy framework in our breakdown of the Los Angeles Adaptive Reuse Ordinance, which helped lay the groundwork for many of the conversion projects now moving forward. Together, these factors are creating a new wave of redevelopment opportunities across the city.

Why Developers Like Jamison Are Leading the Trend

Large office conversions require a unique combination of experience, capital access, and patience.

Developers like Jamison have been particularly active in this space because they already own many older office properties that are well positioned for redevelopment. Rather than selling these assets into a weak office market, converting them into residential units can unlock significant long-term value.

Securing $195 million in construction financing also highlights the importance of institutional capital in making these projects feasible. Conversions often involve extensive structural upgrades, new plumbing and electrical systems, and complete interior reconfiguration.

These factors make conversion projects complex, but potentially rewarding for developers willing to navigate the process.

What This Means for the Los Angeles Multifamily Market

Projects like the Jamison redevelopment illustrate how Los Angeles office to residential conversion could play an increasingly important role in the city’s housing pipeline.

While ground-up multifamily development remains challenging due to construction costs and regulatory hurdles, conversions can provide an alternative path for delivering new housing units.

For investors and market observers, these projects signal several key trends:

• Continued repositioning of underperforming office assets
• Growing interest in adaptive reuse opportunities
• Institutional capital returning to select urban redevelopment projects

As these projects move forward, they will likely continue reshaping the skyline and residential landscape of Downtown Los Angeles.

The Bottom Line

The $195 million financing secured by Jamison represents more than just a single redevelopment project. It reflects a broader shift toward repurposing aging office buildings into residential housing across Los Angeles.

As developers, lenders, and policymakers continue exploring ways to address both office vacancies and housing demand, Los Angeles office to residential conversion projects are likely to remain a key part of the city’s evolving real estate landscape.