A $200 million redevelopment will convert the downtown Los Angeles World Trade Center into 512 affordable apartments through a partnership between Jamison and Kennedy Wilson. The project, called Sky Castle, is expected to open in early 2028 and is the first step in a broader plan to create about 4,000 affordable housing units across Los Angeles.
Key Takeaways
- Jamison and Kennedy Wilson plan to redevelop the L.A. World Trade Center into a 512-unit affordable housing community.
- The $200 million project will rename the property Sky Castle and is expected to open in early 2028.
- Monthly rents are expected to start at about $937 for one-bedroom apartments, subject to affordable housing eligibility.
- The redevelopment is the first of about 15 planned projects targeting roughly 4,000 affordable homes across Los Angeles.
- Eligible residents must earn between 30% and 80% of the area’s median income.
What Is Planned for the L.A. World Trade Center?
The L.A. World Trade Center will be converted from an aging office complex into an affordable apartment community called Sky Castle. The property is located at Figueroa and Fourth streets in downtown Los Angeles, occupies an entire city block, and was originally constructed in the mid-1970s as an international business center.
Construction is expected to begin after the remaining office tenants vacate the building. Developers plan to complete the redevelopment and welcome residents in early 2028.
A Full-Block Conversion
The completed project will include 512 affordable apartments for qualifying households. Planned community amenities include a fitness center, resident lounge, co-working space, and renovated rooftop recreational facilities.
The project also comes as California faces broader affordable housing delays, including nearly 40,000 stalled housing units that have been described as shovel-ready but delayed by financing challenges and rising costs.
How Are Jamison and Kennedy Wilson Expanding Affordable Housing?
Jamison and Kennedy Wilson are jointly leading the redevelopment through Jamison’s affordable housing division, Arden Residential, and Kennedy Wilson’s nonprofit affiliate, Vintage Housing.
The L.A. World Trade Center conversion is the first announced project in a broader initiative that aims to develop approximately 4,000 affordable housing units over the next several years.
Office Conversions and New Construction
Future developments are expected to include both office-to-residential conversions and newly constructed housing. Many of the targeted properties are located near public transportation between downtown Los Angeles and the Interstate 405 corridor.
The companies stated that several planned developments will use office buildings already owned by Jamison. That approach would allow existing commercial properties to be repurposed for residential use.
Separate housing policy efforts across the state have also included Santa Barbara’s temporary rent freeze for older residential units, showing how California communities are using different tools to address housing affordability.
Why Is the Office Building Being Converted?
The L.A. World Trade Center was originally developed to attract international businesses. The property included services such as banking, travel assistance, and office space for global companies.
Over time, commercial tenants relocated to newer office buildings, leaving older office properties with reduced demand. Rather than demolishing the structure, the developers chose adaptive reuse. The approach preserves much of the existing building while redesigning interior spaces for residential use.
Los Angeles has also updated adaptive reuse regulations to simplify office-to-housing conversions and support projects that increase residential supply.
Sky Castle will provide apartments for households earning between 30% and 80% of the area’s median income.
Developers expect monthly rents to begin at about $937 for one-bedroom units. Some two-bedroom apartments are projected to rent for about $1,100 per month, while selected three-bedroom units are expected to cost around $1,300 monthly.
Planned Resident Amenities
The development will include amenities commonly found in newer apartment communities, including shared work areas, fitness facilities, resident gathering spaces, and rooftop recreation areas.
Existing rooftop tennis courts are expected to be converted into pickleball courts during redevelopment.
Affordable housing financing for the project is expected to include public funding tools such as low-income housing tax credits and tax-exempt bonds. These tools help support below-market rental rates for eligible households.
What Happens Next for the Housing Initiative?
The L.A. World Trade Center redevelopment is expected to serve as the first completed project in a broader affordable housing campaign led by Jamison and Kennedy Wilson.
The companies plan to develop approximately 15 housing projects over the coming years. The initiative is expected to combine adaptive reuse with new residential construction.
Many future developments are expected to focus on underused office buildings located near major transit routes. The goal is to increase affordable housing opportunities while making use of existing commercial properties.
Frequently Asked Questions
What is Sky Castle?
Sky Castle is the new name for the redeveloped L.A. World Trade Center. It will become a 512-unit affordable apartment community in downtown Los Angeles.
Who is developing the project?
Jamison and Kennedy Wilson are leading the redevelopment through Arden Residential and Vintage Housing.
When will Sky Castle open?
Developers expect the apartment community to open in early 2028 after construction begins following the departure of remaining office tenants.
Who can qualify to live in the apartments?
The apartments are intended for households earning between 30% and 80% of the area’s median income under affordable housing eligibility requirements.
