L.A. World Trade Center to Become Affordable Housing Through $200M Redevelopment

• The former World Trade Center in downtown Los Angeles will be converted into 512 affordable apartments through a $200 million redevelopment.
• The project, renamed Sky Castle, is the first of about 15 affordable housing developments planned by Jamison and Kennedy Wilson.
• Developers aim to deliver approximately 4,000 affordable housing units across Los Angeles over the next five years by converting aging office buildings and developing new residential projects.

What the Sky Castle Project Includes

The aging World Trade Center at 350 S. Figueroa St. in Downtown Los Angeles is set for a major transformation into Sky Castle, a 512-unit affordable housing community. The $200 million adaptive reuse project is one of the largest office-to-residential conversions planned in downtown Los Angeles and is expected to open in early 2028. Located at the corner of Figueroa Street and Fourth Street, the existing 10-story office building contains approximately 400,000 square feet and occupies an entire city block. Originally built in the mid-1970s as an international business center, the property has struggled to compete with newer office buildings over the past several decades. Construction is expected to begin in August 2026 after the remaining office tenants vacate the building.

What Residents Can Expect at Sky Castle

Unlike many affordable housing developments, Sky Castle will offer amenities typically found in newer market-rate apartment communities. Plans include a fitness center, resident lounge, co-working space, and rooftop recreational areas. The building already features six rooftop tennis courts, which developers are considering converting into pickleball courts. Rental rates are expected to begin at $937 per month for one-bedroom apartments, while select two- and three-bedroom homes are projected to rent for approximately $1,100 and $1,300 per month, respectively. The apartments will serve households earning between 30% and 80% of the area's median income.

What the Larger Affordable Housing Strategy Looks Like

Sky Castle is only the beginning of a much larger housing initiative led by Jamison and Kennedy Wilson. Through Jamison's affordable housing division, Arden Residential, and Kennedy Wilson's nonprofit affiliate, Vintage Housing, the companies plan to develop roughly 15 projects throughout Los Angeles over the next five years. Many of those developments will involve converting underutilized office buildings located near public transit between Downtown Los Angeles and the 405 Freeway. Others will be newly constructed residential communities built from the ground up. The developers believe the shift reflects changing office demand following the pandemic, with many older office properties no longer attracting traditional tenants.

What Adaptive Reuse Means for Los Angeles

Los Angeles has increasingly embraced office-to-residential conversions as part of its effort to address the city's housing shortage. Recent zoning reforms, streamlined adaptive reuse regulations, tax credits, tax-exempt bonds, and other public financing programs have made affordable housing projects more financially feasible for developers. Jamison has already completed 14 office-to-housing conversions, and Sky Castle will become its 15th adaptive reuse project, bringing years of experience to one of the city's largest affordable housing redevelopments. If successful, the broader initiative could add thousands of below-market-rate homes while giving obsolete office buildings a new purpose, creating much-needed housing near transit and employment centers.