Saturday, September 19, 2009

Barriers Down, LAPD Poises for Opening

12:52 AM | , , , , ,

With riot-strength chain link finally removed, curious downtowners are now able to get an early glimpse at the much-heralded landscaping improvements at the new LAPD headquarters across from City Hall. The 10-story building itself, begun in 2006, has been complete for some time. The controversy meanwhile, has been around the green space, as the site chosen for the headquarters was at one time intended to sustain a public plaza, according to some proponents. The now accessible public space boasts native planting, plentiful seating, and a near 1-acre lawn along 2nd St, according to blogdowntown.

The building, though constructed relatively quickly, has left a gaping void in one of the most newly dynamic corners of Downtown for almost three years now. Art walkers and farmers market-goers were forced to circumnavigate the peculiar site. Obtrusive construction fencing has left many wondering what kind of project could possibly have the privilege of being hemmed in by City Hall, CalTrans District 7 HQ, and the historic LA Times building. Who else, but the LAPD?

While officers and employees won't be able to move into the $440 million building until late next month, the 500,000 sf headquarters will be able to accommodate 800 more employees than the current Parker Center's 1,500. The DMJM-designed building and grounds are expected to receive a LEED Gold designation; a restaurant, a memorial to fallen officers, and a rooftop garden will also be featured.

Is anyone else thinking how great this building will look in the opening sequence of a futuristic cop drama?

Thursday, September 10, 2009

Unfinished Concerto Sells Out in Hours

10:35 AM | , , , , ,

The developer of Concerto, the high-profile condo development at Figueroa and 9th Sts., was able to sell all 77 loft units in one busy day last Saturday, August 29. Phase I of the iconic, angled-glass tower is almost complete, with move-in scheduled for early next year. But the fire sale of the initial units will allow Astani Enterprises, Inc. to move ahead with phase II, regardless of the state of outside financing. At an average of $375 per sf, Astani says the buyers did get a deal on the building, which cost $500 per sf in construction costs.


But the lowered sales prices are well worth the $31 million cash infusion, according to Astani, because he does not have to worry about further construction lending. The cash will allow him to proceed swiftly on the second, 30-story luxury condo tower. Astani expressed concern over whether his lender, Corus Bank of Chicago, would be able to follow through with the final 5 to 10% of the $200 million construction loan. Corus has met with uncertainty thanks to sour investments following the real estate boom. Sonny Astani, head of the Beverly Hills development office, has already invested $55 million of his own money in the project.

The phase II condo tower is also almost complete and may begin sales as early as next month. Once complete, the complex will consist of twin 30-story condo towers, a 7-story loft building, and an acre of green space boasting firepits, a saltwater pool, cabanas, and...a Tai Chi park?

Tuesday, September 8, 2009

Roski Pushes to Bypass CEQA in Industry Stadium

10:34 AM | , , , , , ,

Just days before this year's legislative session comes to a close, billionaire developer Ed Roski is lobbying the state's legislature to bypass key environmental and planning requirements for the proposed 75,000 seat football stadium. In a meeting with the state Senate Leader and Assembly speaker last week, Roski argued that the plan would provide "thousands of high-wage jobs" in an area with disparagingly high unemployment. Roski's proposal would also block litigation against the controversial project, including the pending suit filed by neighboring Walnut.

'Not so fast,' say Los Angeles County supervisors. Supervisor Gloria Molina argues that she supports the idea of a new football stadium in LA County, but that it can't justify a waiver of the strict California Environmental Quality Act regulations. "Hospitals, police stations, freeways and all sorts of valuable projects manage to be built without the necessity of CEQA exemptions," she says, and urges her companions to take the same stance. Highest among County's concerns are complications stemming from increased traffic to the area - a concern they say, that isn't felt at the state level.

But legislators in Sacramento have remained receptive to Roski's plea. Unfortunately, this is just the sort of misalignment between state and local viewpoints that has polarized all parties in talks over whether - and how - to sell the Los Angeles Memorial Coliseum for desperately needed cash. Of course many initial supporters of the NFL's return to LA liked the idea of a professional team playing in the historic Coliseum. But Roski's Majestic Realty Co. is probably correct in assuming that a shiny new stadium with sufficient parking and new traffic lights will make a bid to the NFL much more attractive. Legislators are due for a decision tomorrow, Friday, September 11.

Sunday, August 30, 2009

University Gateway Nears Completion, Begins Leasing

9:41 PM | , , , , , ,

University Gateway, the housing behemoth being built by Urban Partners, LLC in conjunction with USC, has begun leasing its units, about a year ahead of expected move-in. The 8-story complex will boast 421 apartment units accommodating 1,650 beds at a university in desperate need of local housing. The project, which sits on the corner of Jefferson Blvd and Figueroa St, replaced an open-air auto lot that was owned by Felix Chevrolet and Cadillac. The famed neon 'Felix the Cat' remains intact (thank God) across the street.

With construction completion scheduled for June of next year, the owners spared no time in starting to make lease options available fully one year before the 2010/2011 school year. The company has set up a leasing office in the University Village shopping center and claims it has seen lots of early interest. A large challenge will be to get the word out and convince students that they should choose the Gateway over other alternatives (especially considering the alleged cramped conditions and 7 ft ceilings). The university has come under enormous pressure to add beds both on- and off-campus to accommodate an increasingly residential student population. While USC will not manage the property, it will maintain pricing agreements with the owner and has exclusivity to ground level retail, which will include a university bookstore and gym.

With area housing largely derelict and in short supply, students who are not invited back to live in campus housing after their first year are forced to pay exorbitant prices for substandard conditions. The quandary peaked last year when USC was given ownership of the now-dissolved slumlord housing provider Conquest. In the legal battle, Conquest sued the Gateway project for failing to provide sufficient parking on- and off-site, but was counter-sued for monopolistic business practices.

Interestingly this summer, there appeared to be a housing surplus around campus, as mom-and-pop housing providers struggled desperately to fill units. This may be in part due to the university's recent completion of a large dormitory on campus, which has allowed USC to guarantee housing to all freshman and sophomore undergraduates. According to the Daily Trojan, some students have expressed trepidations about signing a lease without being able to see the finished project. Upperclassmen will remember all too well the housing purgatory of 2006, when residents who were promised a spot in the sold-out Tuscany were forced to hole up in a hotel downtown for weeks before moving in.

Sunday, August 23, 2009

American Apparel Commits to 10 More Years Downtown

12:46 PM | , , , , ,

American Apparel, the nation's largest clothing manufacturer, has committed to extend its current lease in its Warehouse District headquarters until 2019. Its occupation of an 800,000 sf, 8-story pink warehouse tower is the largest tenancy downtown, both by size and value. The landlord, Meruelo Maddux Properties, Downtown's largest lessor, filed for bankruptcy just four months ago. As their largest client, Meruelo Maddux would be in even greater trouble had the iconic clothing brand not decided to extend its lease.


American Apparel, whose previous lease ended in December of last year, had been scoping out possible replacement locations, including a former Boeing plant in Long Beach. According to LA Downtown News, the company's CEO was satisfied by renewed negotiations on behalf of Meruelo Maddux. Whether there were concessions made to terms or prices on the new lease remains unclear, and the extension has yet to be approved in bankruptcy court. The company, which was founded in 1989 and is now publicly traded, has been housed in its current location since 2000.

The site, located at 747 Warehouse St., is not only home to the company's factory, warehouse, and corporate headquarters, but also a retail store boasting the company's largest collection at reduced prices. The vertically-integrated company, which has taken a progressive, vocal stance on issues such as immigration reform and gay marriage, famously uses its advertisements to promote its message, including the unmistakable billboards that grace the large headquarters. As its own advertiser and marketer, the manufacturer has been enormously successful at creating and disseminating its brand, which includes the tagline Made in Downtown LA. "Made in the Industrial LBC" doesn't quite have the same ring.

Saturday, August 22, 2009

Weekend Buzz

5:56 PM |

Sunday, July 19, 2009

Orsisi Phase III turns Chinatown into Little Tuscany

9:38 PM | , , , , , , ,

The oft derided Italianate empire of Geoffrey Palmer is expanding, apparently unfazed by the real estate slowdown, with the near completion of Orsini Phase III at the corner of Figueroa St and Cesar Chavez Ave, north of the 101 freeway. With the apartment's three installments occupying all but one of the intersection's corners, the area maintains an eerie, plastic atmosphere, devoid of pedestrian activity. Palmer has made his name constructing gigantic, ostentatious apartment buildings around downtown with tired Mediterranean flourishes and names like Medici, Visconti, and Piero.


Developer was required by the city to provide 13,000 sf of retail on the ground floor - a less than fortunate concession given that the corner is hidden behind miles of gaudy fountains and stucco balconies. Adding insult to injury, popular local grease dive BBQ King was razed at the hands of mighty Orsini. But Palmer has made another, somewhat trickier promise - retail lease rates must drop if occupancy doesn't hit 30% by the time the apartments are three quarters filled. This means that rather than the fancy Quizno's and Coldstone Creamery Palmer was no doubt tempting, we may get smaller, more local (read: Chinese) eateries instead; (perhaps even a vengeful resurrection of BBQ King).

The new building will allegedly feature more pedestrian-friendly and sustainable design options, assuming they're not looking to the sky bridges and anemic lawns of phase II as a model. Rates in the third building are TBA, but they can be estimated at just over the $2.53/sf being asked of the older 2-bedrooms. To Palmer's credit, the apartments are some of the most visible and accessible rentals in the daunting downtown market, and aren't (entirely) overpriced. Whether the new downtown has benefited from such palatial ghettos of pastiche is up for debate, but one man has certainly made a healthy killing and filled a great demand to boot.

Tuesday, July 7, 2009

Navigating the LA Housing Market

8:10 PM | , , , , , , ,

Don't let double-digit unemployment and a frozen credit market fool you - some LA neighborhoods are doing just fine, thank you. And you might be surprised by the areas that are doing particularly badly. How has the recession affected gentrifying neighborhoods and the up-and-comers? And are the super-rich truly still recession-proof? Los Angeles Magazine has just published a chart detailing homes sold, median selling price, and price per square foot for every imaginable LA area neighborhood between 2007 and 2008. The list can be quite daunting so herewith, a summary of the notables.

Most houses sold in 2008: Lancaster (93536) 1,458
Least houses sold in 2008: Downtown (90021) 16

Highest median price in 2008: Beverly Hills (90210) $2,690,000
Lowest median price in 2008: Lancaster (93535) $155,000

Highest price/sf in 2008: Santa Monica (90402) $984
Lowest price/sf in 2008: Lancaster (93535) $88

Biggest gainer from 2007: Westwood (90024) +17.9%
Biggest loser from 2007: Watts (90002) -49.0%

Wow. It is certainly an interesting time to be owning (or building) in Lancaster. Despite nearly halving in value from the year before, houses were still getting scooped up there last year thanks to drop-dead prices, which were lower even than Compton or Watts. But those inner city neighborhoods were by far the biggest losers from the year over. Their central location gives them artificially high prices during boom years. Beverly Hills and Malibu topped out the price index as can be expected. And Santa Monica's dense zoning and oceanfront location gave it the highest price per square foot. Despite sluggish movement in Downtown, the 90021 zip still managed a double digit increase from 2007. And the combination of density and stability stemming from proximity to UCLA, is the only explanation for Westwood's freakish mini-boom.

Monday, July 6, 2009

East LA Braces for Gold Line Opening

8:52 PM | , , , , , , ,

The Metro Gold Line eastside extension - connecting East LA to Pasadena via Downtown - is set to begin operation in September, just a couple of months after the initial scheduled opening. Metro is currently working on last-minute cosmetic details, removing construction equipment, and testing the mechanics of the 6-mile extension. The line is projected to carry 13,000 passengers per day in the first year, but every prior rail opening in the city has far surpassed rider expectations. Primary in pre-opening considerations is safety, according to MTA, especially in the underground segment of the line - the dual tunnel system that has been constructed under Boyle Heights.

Pedestrian and vehicle safety workshops are being conducted in the communities that the new line will serve, especially those that may not have been exposed to light-rail transit, namely the largely Spanish-speaking communities east of the LA River. In addition, MTA has employed safety ambassadors to stand outside of the stations for the next 6 months, answering questions and giving instructions to curious passers-by. MTA has proven extremely diplomatic in its approach to the construction and introduction of this line, having also assisted nearby small businesses maintain customer traffic despite construction inconveniences. This is an approach MTA will want to retain for public relations with South LA communities that will be affected by the incoming Expo Line. Some residents there have fought immutably to block ground-level crossings. Residents will also want to watch for safety statistics on the new Gold Line.

And drivers take warning: cameras will be placed at every train crossing, ready to ticket those imprudent drivers who make illegal turns.

Friday, July 3, 2009

Santa Monica Demos Parking in Favor of Greener Alternative

1:24 PM | , , , ,

Parking structures at 1200 4th St. and 1400 2nd St. will be demolished in accordance with a $1 million spending package approved by Santa Monica's City Council Tuesday night. As part of a contract with construction firm Morley Builders, two larger, "greener" structures will take their place. The new structures will incorporate solar power, ground floor retail, bike parking, and public restrooms. They will also increase capacity by 250 cars each.

The two structures, which are the smallest of the area's six city-owned structures, were built as part of the city's plan to attract downtown retailers by eliminating parking requirements. The arrangement has been extremely successful, especially at Third Street Promenade, where high-end retailers clamor to lease the pricey spots. It has also led to a dense, walkable downtown that isn't plagued by unsightly ground parking like so many other Southern California shopping districts. Long a practitioner of so-called smart parking, Santa Monica is also home to a new parking structure at its civic center, so innovative and handsome it has been featured in a spread of Architectural Record.

Also on the voting sheet Tuesday night was an option to increase the city's bandwidth to bolster WiFi hot spot coverage. With its small area and fat pockets, Santa Monica may well be the first Southern California municipality to offer citywide wireless coverage, so far a distinction claimed only by Google's Bay Area hometown of Mountain View.

ShareThis