Former IBM Offices at 3424 Wilshire to Become Housing

Why It Matters

The conversion adds much‑needed housing supply in a high‑density market and demonstrates how legacy office assets can be leveraged to meet Los Angeles’ affordability goals. It also signals lender confidence in the profitability of office‑to‑residential conversions.

Key Takeaways

• 250,000‑sq‑ft IBM building to become 260 apartments
• 13,000 sq ft of retail space retained on ground floor
• Amenities include racquetball, fitness center, game and karaoke rooms
• Jamison Services secured $60 million loan for adaptive reuse
• Project adds housing to Koreatown’s office‑to‑residential conversion trend

Pulse Analysis

Los Angeles continues to grapple with a chronic housing shortage, prompting developers to look beyond new construction toward adaptive reuse of existing office structures. Converting under‑utilized office towers into multifamily units offers a faster, often less costly path to adding inventory, especially in dense corridors like Wilshire where land is scarce. The city’s streamlined permitting for such projects, coupled with growing demand for walk‑able, transit‑rich neighborhoods, has turned office‑to‑residential conversions into a strategic priority for both public and private stakeholders.

The former IBM headquarters at 3424 Wilshire exemplifies this shift. Built in 1958, the 13‑story, 250,000‑sq‑ft building will host 260 apartments, retain 13,000 sq ft of ground‑floor retail, and feature amenities ranging from racquetball courts to a rooftop deck. Jamison Services, once a dominant office landlord, has reoriented its portfolio toward multifamily assets, securing a $60 million loan to finance the project. By blending residential units with community‑focused amenities, the development aims to attract young professionals seeking an urban lifestyle while preserving commercial vitality at street level.

The financing and execution of this project send a clear market signal: lenders view office‑to‑residential conversions as low‑risk, high‑return opportunities in a tightening office market. As more owners follow Jamison’s lead, Los Angeles could see a cascade of similar conversions, reshaping the city’s skyline and easing pressure on the rental market. Policymakers may further incentivize such projects through tax credits or zoning adjustments, accelerating the supply pipeline and helping the region meet its long‑term housing objectives.