The firm’s portfolio includes urban, mixed-use properties, which Garner said made the combination of retail and office space at EDGE Collective a good fit. More traditional retail buyers had passed on the deal because it included office space above the storefronts, he said.
L3 does not plan to make major changes to the properties. Instead, the firm expects to operate them as an investment and lease the remaining office space while the surrounding district continues to grow.
“They’re planning to keep it the way it is,” Garner said. “They felt like they have the relationships to bring some solid tenants and help add some value.”
PTM Partners and DoveHill Capital Management purchased the century-old 1246 Central Avenue building, the adjacent hotel land, and a 0.38-acre surface parking lot along 1st Avenue South in 2019 for $13 million.
The developers renovated the Central Avenue building as part of the first phase of EDGE Collective, which also included the Moxy hotel and a shared courtyard between the two properties.
The building previously housed Furnish Me Vintage, a longtime furniture and home décor store that closed in 2019.