Los Angeles is set to gain approximately 4,000 affordable housing units through a new development partnership that will combine adaptive reuse projects with ground-up construction, beginning with the conversion of the former LA World Trade Center into a 512-unit residential community in downtown Los Angeles.
The initiative brings together Arden Residential, the newly launched affordable housing division of Jamison, and Vintage Housing, Kennedy Wilson’s affordable housing development platform. Together, the partners plan to expand the city’s affordable housing supply by redeveloping underused properties and building new residential communities in transit-oriented, job-rich neighborhoods.
Sky Castle conversion anchors first phase
The first project will transform the 400,000-square-foot former LA World Trade Center at 350 S. Figueroa Street into Sky Castle, a 512-unit affordable housing development with one-, two-, and three-bedroom apartments. The redevelopment will include new kitchens and bathrooms, resident lounges, co-working space, community rooms, on-site storage, laundry facilities, and mail parcel rooms.
The project also reflects a broader repositioning of the aging office complex, which dates back to the 1970s and once served as a hub for international business activity before losing tenants to newer downtown office towers in subsequent decades.
The redevelopment carries an estimated investment of about $200 million, underscoring the scale of adaptive reuse projects now reshaping parts of downtown Los Angeles as developers seek to convert underutilized office stock into residential use.
Rents at Sky Castle are expected to start at approximately $937 for one-bedroom units, with larger family-sized apartments projected to remain below roughly $1,300 per month. Developers say the pricing structure aims to deliver below-market housing for moderate-income households in a city where affordability pressures remain acute.
Development phases
Construction will proceed in two phases. Phase I, scheduled to begin in August 2026, will convert the building’s concourse levels into 241 affordable apartments for households earning between 30% and 80% of Area Median Income. Phase II will redevelop the office tower above, adding another 271 affordable units. The project has received approval from the City of Los Angeles under its adaptive reuse ordinance and has been endorsed by city leaders.
The building has been cleared of remaining office tenants to allow redevelopment work to move forward.
Broader housing pipeline
The World Trade Center conversion serves as the first step in a broader housing pipeline that aims to deliver approximately 4,000 affordable rental units across Los Angeles. The partnership will pursue both office-to-residential conversions and new construction as the city continues to address a persistent shortage of affordable housing.
Beyond the initial project, the developers plan to advance roughly 15 additional developments across Los Angeles over the next several years. These projects will focus on aging office properties between downtown and the 405 Freeway, where underutilized buildings and strong transit access create favorable conditions for residential conversion.
Financing and development model
Affordable housing development at this scale typically relies on layered public financing tools, including low-income housing tax credits, tax-exempt bonds, and other subsidy programs that help bridge the gap between construction costs and below-market rents. Developers say assembling these financing structures is often complex but essential to making large-scale income-restricted housing viable in high-cost markets such as Los Angeles.
Partners and platform growth
Kennedy Wilson’s affordable housing platform operates through its Vintage Housing investment, which it expanded in 2015. Since then, the platform has grown from roughly 5,000 to more than 13,000 affordable housing units across the western United States, serving working families and seniors.
Garrett Lee, chief executive officer of Jamison, said the partnership combines Jamison’s local development expertise with Kennedy Wilson’s affordable housing platform to deliver housing through both adaptive reuse and ground-up construction.
Market shift toward adaptive reuse
The initiative reflects a broader shift in Los Angeles real estate, where older office buildings have increasingly struggled to retain tenants amid changing workplace patterns. Developers are turning to residential conversion as a practical reuse strategy, particularly for buildings near transit infrastructure that can support higher-density housing.
City-level policy changes, including streamlined adaptive reuse regulations, have also helped accelerate office-to-residential conversions by reducing regulatory barriers and shortening approval timelines.
National development context
The Los Angeles initiative adds to a broader national pipeline of large-scale residential developments, including projects such as Garden Station in Villa Park, Illinois, which is advancing as a net-zero mixed-use residential community.
Project Factsheet: 4,000 New Affordable Housing Units Planned Across Los Angeles
Location: Multiple sites across Los Angeles, California
Lead Partners: Kennedy Wilson (through Vintage Housing) and Jamison (through Arden Residential)
Development Goal: Approximately 4,000 affordable housing units through adaptive reuse and ground-up construction
First Project: Conversion of the former LA World Trade Center into Sky Castle, a 512-unit affordable housing community at 350 S. Figueroa Street in downtown Los Angeles
Building Size: Approximately 400,000 square feet
Housing Mix: One-, two-, and three-bedroom apartments
Construction Timeline: Phase I begins August 2026
Phase I: 241 units for households earning 30%–80% of Area Median Income (AMI)
Phase II: 271 additional units in the office tower
Project Status: Approved under Los Angeles adaptive reuse ordinance
Strategy: Office-to-residential conversions and ground-up construction in transit-oriented, job-rich neighborhoods
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