With the exception of the Medallion apartments at 4th/Main, there have been no ground-up market rate housing developments built in the Historic Core in Downtown LA. Pretty much all new lofts and condos in the Historic Core that have come on the market over the last decade have been conversion projects taking advantage of the adaptive reuse ordinance. All that’s about to change, however, as numerous high-rise projects have been proposed in the Historic Core that will be the next evolution of Downtown LA’s urban revitalization, filling in all those anti-pedestrian surface parking lots. We won’t have to wait too long for some action because the exciting new chapter for the Historic Core begins now with Topaz, a new mixed-user, that broke ground last Friday near 6th/Main.
Category Archives: economic development
We all know the Downtown LA real estate market is already hot, but it just got way hotter in here. Escrow closed yesterday on Watermarke Properties’ trophy property, Watermarke Tower, in South Park selling for a record breaking price of $160.5 million. Purchased by Bethesda, MD-based ASB Real Estate Investments (they also just bought a huge property in the Arts District), the 35-story luxury apartment high-rise with 214 units is apparently the most expensive apartment community sold in the state of California — ever. To be specific, it is one of, if not the state’s most expensive trade based on a per unit basis coming in at approximately $750,000 for each unit. The deal was brokered by HFF Managing Director Mark Peterson.
Yesterday was so much fun. I was invited by FOX 11 to come on their noon show to talk about Downtown LA (my favorite subject of course) and all the newest exciting things happening that are putting our once ignored urban center back on the map. Check out the video above and here are the topics we covered:
- New high-rises proposed in the Historic Core
- New developments blocking sidewalks an issue for pedestrians
- Broadway’s amazing road diet and pedestrian plazas
- Retail continues with Macy’s Plaza $180 million makeover
- And Trader Joe’s rumors!
Thank you again so much to FOX 11 News!
Almost two years after developer Wood Partners first began construction, the new 8th+Hope apartment tower began accepting resident move-ins earlier this month in August. Designed by Atlanta-based The Preston Partnership, the modern gleaming tower clad throughout in blue-green glass rises 22 stories high and adds another 290 rental units to the market including: 1, 2, and 2½ bedrooms with square footages ranging from 707 to 1,634. Every single unit gets a private balcony. Impressive.
Ralphs Fresh Fare in Downtown LA is more than just a grocery store. Sure it’s one of the highest grossing Ralphs in their entire chain, but it’s also considered a major milestone in the history of Downtown LA’s urban revitalization. Before the supermarket opened in July 2007 at the corner of 9th/Flower in South Park, the small but growing population of new downtown residents really didn’t have anywhere to shop for groceries. It goes without saying that it was kind of a huge deal when Ralphs opened because it meant you could actually buy groceries without leaving downtown. That was critical for supporting the downtown population growth that allowed for more businesses to open. Now seven years later, Downtown LA is a much different place. You could say we’re finally coming to a tipping point of no return. When it comes to grocery stores, the competition is about to get heated soon. Not only did Smart & Final Extra open down the street from Ralphs last year, but next year a large 42,000 square foot Whole Foods will open just a few blocks away at 8th/Grand, and potentially a new Trader Joe’s will open at The Bloc also just up the street at 8th/Hope. As a result, Ralphs Fresh Fare is starting on an exciting $2.5 million remodeling project that will keep the grocery store attractive and competitive within downtown.
The Historic Core in Downtown LA is where it all started after the adaptive-reuse ordinance was passed in 1999. Developer Tom Gilmore first took advantage of the new ordinance and converted three vacant and dilapidated historic buildings into 230 live/work lofts in what is now known as the Old Bank District at 4th and Main. It’s definitely come a long way since 1999. Over the last 15 years, the Historic Core — with its massive stock of, what else, historic buildings — has become a mixed-use residential hub with increasing numbers of restaurants, bars, and yes, even retail. Now that a good chunk of historic structures has been converted to mostly housing, it’s only logical for the next step in Downtown LA’s evolution toward urban maturity to begin building new ground-up projects as well that will help fill in those surface parking lots that have disrupted the urban fabric with its negative, anti-walking sprawling effects. Now, the exciting continuation of the Historic Core’s revitalization includes three new proposed high-rises set to break ground in the next year: the 38-story SB Omega, the 15-story Broadway Lofts, and the 33-story Hill Tower Lofts.
Can you believe it’s only been less than two years since City Target first opened in Downtown LA back in late 2012? Before that, the idea of having any major retailer downtown was still considered a pipe dream. Sure it was “just another” Target, but to downtown residents, it meant a lot more to us. It meant we could finally buy an iPad or a vacuum cleaner without having to leave downtown for simple basic stuff. And who could’ve imagined that a year later, retailers that would usually only open on the Westside (like on Robertson, Melrose, or Beverly) were actually opening stores downtown (i.e., Acne Studios, Aesop, OAK NYC, etc.) creating the beginnings of a bona fide new shopping district. Thank goodness the retail momentum continues to grow stronger. In fact, two of the most recent exciting additions to Downtown LA—H&M and Zara, both the largest flagship stores in SoCal, which opened 3 months and 2 months ago respectively—are already doing better than anyone could’ve expected.
One of LA’s hottest ascending designers, Jonny Cota, is relocating his flagship store, Skingraft, from its current location at the Banco Popular building in the Old Bank District to 8th/Spring on the western edge of the Fashion District. The 2,600 square foot space couldn’t be more perfect for Skingraft, and when it opens, will contribute to this growing neighborhood not far from all the action happening at 9th/Broadway. Located on the ground floor of the Great Republic Lofts across from Terroni, the new space—long and horizontal—takes up almost the entire block along 8th Street and is lined with big beautiful windows, which will be used by the store to showcase their designs.
Last November, we found out that a new CVS Pharmacy drug store had signed a lease to take over the entire corner of the historic Van Nuys building at 7th and Spring in the heart of the Historic Core. This can be seen as a good and bad thing for those who live in downtown. Good because it’s always nice to have more options and variety to get your daily residential needs fulfilled. After all, CVS along with other drug store chains like Walgreens and Rite Aid are meant to be neighborhood serving retailers that are convenient and ubiquitous in established urban communities. However, this particular CVS can also be viewed as a bad thing because of its close proximity to Skid Row where homeless individuals are known to frequent these drug stores to purchase prescription drugs and alcohol. In the case of Rite Aid at 5th/Broadway, loitering in front of the store is a big issue along with drug dealers and other unpleasant “it’s-your-fault-for-moving-to-an-urban-downtown” experiences like getting beat up by random thugs!
Back in February, there were rumors flying around that the Library Tower (aka US Bank Tower) could go part residential and hotel in addition to office. And although the LA Times confirmed today that won’t happen, exciting rumors also from February of the observation deck and upgraded lobby did stick. By this time next year, Library Tower—the tallest skyscraper west of Chicago at 1,018 feet tall—could become one of LA’s most sought after tourist attractions with a new observation deck and restaurant. In fact, the owners of the skyscraper hope to attract 500,000 visitors a year, which could become a nice economic boost to the local businesses and restaurants nearby in the Financial District and Bunker Hill. For me, I think it’s about time Library Tower got an observation deck (25 years later).
A bright, bright future awaits the historic 1924 Commercial Exchange building in Downtown LA that’s been sitting empty for well over two decades. What an interesting history this building has as it was once pretty much split in half and moved to make way for a street widening project in the 1930s. Can you imagine a beautiful and irreplaceable building like this left to basically rot for so long? Well, our worries can now be put to rest. A very prominent New York hotel developer, the Sydell Group, has successfully purchased the historic edifice located at 8th and Olive catercorner to the exciting Whole Foods mixed-use project opening in 2015.
Less than two weeks ago, DTLA Rising broke the very exciting news that AEG had signed a lease taking over the entire Desmond Building in Downtown LA’s rapidly growing South Park district. The beautiful historic structure built in 1916 sat empty and dilapidated, sadly, for many decades even though it sits directly across the street from multiple high-end residential buildings including the South Group condos (Elleven, Luma, Evo) and the Met Lofts. But now the Desmond will be getting the much needed TLC it deserves when AEG — owner of nearby Staples Center and LA Live — relocates their ticketing and live entertainment divisions into the Desmond come next year.
It’s been three months since construction first began on the parking structure that will be attached to the new and exciting 888 S Hope, a brand new 33-story residential tower about to break ground later this year in burgeoning South Park. Being developed by LA-based CIM Group, new renderings from RTKL — the architect firm designing the project — show lots of retail space on the ground floor of both the parking structure and the tower itself. As you can see in the renderings (above and below), ample retail space will face Hope Street and wrap around the tower along 9th Street bordering the upcoming boutique Empire Hotel.
This just in: AEG Worldwide has signed a long-term lease to take over purportedly the entire long-vacant Desmond Building located in Downtown LA’s South Park district at 11th/Hope, just a stone’s throw from the AEG empire of Staples Center, LA Live, and now even the LA Convention Center that they manage. Specific details aren’t known yet as an official press release will be coming out soon, but the building will apparently be the new consolidated headquarters for AEG Worldwide, which is currently located in separate offices in South Park, including inside LA Live itself. A brand new sixth floor will be added to the top of the roof that will bring the total square footage to about 80,000+ square feet. There were also initially plans to add a rooftop bar to the building.
Come Walk with Me: Brigham Yen Shows the LA Register What It’s Like to be a Pedestrian in Downtown LA
Just last week, I gave a staff writer, Bill Johnson, at the Los Angeles Register a 4 hour walking tour of Downtown LA. Yes, we actually walked for those who don’t believe it’s possible in “car-centric” Los Angeles. The walk was not only long but interesting all along the way. I love giving these walking tours because it’s always my goal to surprise those who aren’t familiar with downtown not only all the exciting changes happening but also that it’s completely possible to be a pedestrian in Los Angeles when a city has a centralized urban center that’s filled with things to do and see. Simple concept, yet so many were/are skeptical it could ever happen here in sprawly LA. To read the full tour described by Johnson, please check out the LA Register article by clicking here.