[BrighamYen]

^ There are many things that happen behind closed doors, which I only had a chance to learn while working at the BID. You would THINK the media picks everything up like a dog hound, but it doesn't! Working at the BID, we "created" much of the news you read about Downtown LA. Can you imagine the stuff that happens behind closed doors in Washington???? lol

I could tell you, but I'd have to kill ya! ;) It's not as serious as it sounds. It really is just red tape and perhaps a myriad other things went wrong. But to blame it solely on construction costs would be provincial.

[LAMetroGuy]

May 25, 2006 – $450 Mil East LA Redevelopment Project on Hold Until New Owner is Found
Article Date: 05/25/06

Full Story:
A major redevelopment project slated to help revitalize East LA has been delayed, at least for a while, as MJW Investments has decided to sell the 23-acre Sears, Roebuck & Co distribution center in Boyle Heights that is targeted for conversion into a $450 mil mixed-use development. The 1.8 msf property, which MJW acquired for $40 mil in 2004, is vacant aside from a Sears retail store and auto center.

The site, located at Olympic Blvd and Soto St, is planned for condos and apartments, along with 660k sf of stores, offices and restaurant space, in what would be the largest redevelopment project in the city’s history. MJW is currently soliciting proposals from potential buyers who would move forward with the planned development. The entire project was expected to take five to seven years to develop, although that time frame now has to be pushed back a bit.

"We've created a blueprint that will facilitate a smooth transition for the new owners and we'll stay involved to insure the project's success," said Mark Weinstein, President and CEO of MJW. The firm's principals have developed more than 10 msf of property including office, multi-family and industrial projects across California, Arizona, Texas and Nevada. "The support of the mayor and city council are behind this venture along with the Boyle Heights community. And Sears' involvement is a crucial component to its success," Weinstein added.

After buying the site and then investing an additional $10 mil in the project, Weinstein said he has been approached by several firms that are interested in carrying out his plans for redeveloping the 1927 distribution center site as the linchpin for modernization of a community in need of new retail outlets and affordable housing. An extensive master plan was created for the location after some 40 meetings with community stakeholders and city officials.

According to Weinstein, during a chat with RENTV President Steve Bloom on the floor at the big ICSC show in Vegas the other day, his company’s business plan is currently focused on projects with a one- to three-year time frame, as the firm expands outside California to focus on the repositioning of more residential and retail sites. The company is issuing Requests for Qualifications to parties interested in the Sears redevelopment. Richard Rizika and a team at CB Richard Ellis will be handling the sale for MJW.

The renovated complex will continue to house a Sears retail store with upper floors turned into condominiums and commercial space. The new owners would be expected to carry out the city's and the community's plan to offer a pedestrian-friendly environment featuring housing, dining, shopping and entertainment.

[citywatch]

It's not as serious as it sounds. It really is just red tape and perhaps a myriad other things went wrong. But to blame it solely on construction costs would be provincial.I know any red tape that involved relocating the women's shelter, & the soaring cost of construction during that time, might have been the biggest problem the devlpr had with city hall, but I can't imagine anything else being as important as, again, the rising cost of material & labor (or lack thereof----a shortage of skilled workers must be growing worse each time another new proj breaks ground in the city).

I know the builder originally wanted to construct only lower rise retail space, mainly for the garment trade, on his parking lot, but was encouraged by the city to include housing in his plans. If anything, it seems like the only reason the Medallion became a bigger, better proj was because of, & not in spite of, city hall.

[citywatch]

ATTENTION! (now for some good news---instead of my moping about the Medallion):

SMN at SSC.com has a photo that shows ground finally being broken for the Concerto condo proj:

http://i5.photobucket.com/albums/y171/LSU/Weekof05-26-06.jpg



Nothing better than seeing another deadzone parking lot bite the dust!

[Steve2726]

There are some new Concerto renderings on the Astani website, I would post but they are macromedia flash. Anyone know how?
http://www.astanienterprises.com/

[Wright Concept]

http://ladowntownnews.com/articles/2006/05/29/news/opinion/edit01.prt

Editorial from LA Downtown News

"Walking in LA"

When it comes to considering the challenges facing Downtown Los Angeles, blank and boring exterior walls on office buildings don't seem to be at the top of the list, especially when compared to deeply serious concerns such as homelessness. Also more obviously pressing than blank walls are a dearth of local retail and that pesky business of creating entertainment opportunities after dark.

But as new properties rise and old ones enjoy multimillion-dollar renovations, the blank-wall syndrome deserves greater consideration than it has historically received. Like it or not, blank walls, along with other issues that have a physical or psychological effect on the community's pedestrians, need to be addressed. It is time to move the concerns of the Downtown walker to the front burner.

On the one hand this states the obvious: Of course a community gaining thousands of inhabitants should be pedestrian friendly. On the other hand, Downtown planners - not just government officials, but also architects and other designers - have a generally poor record of considering the needs and preferences of people walking in Downtown. As noted in the recent Los Angeles Downtown News article "Walk This Way, But Be Careful," designers and planners have long concentrated on getting cars into and out of the Central City, while generally forgetting people who might walk once they are here. As MTA planner James Rojas noted in the story, "We should be the most pedestrian-friendly city in the world. We have the climate. We have the terrain."

There are indications that city officials are finally beginning to get it. The Department of Transportation is conducting another of its myriad traffic circulation studies, but this time has met with local urban planners to get thoughts on pedestrian improvements. While there is a huge crevasse between gathering ideas and implementing them, this early nod to the walker is a positive sign. As the DOT strives to streamline automobile flow in Downtown, it also must remember the person who wants to leave their car in the garage and stroll from South Park to Bunker Hill. The more people who will walk, the better.

Then there are those blank walls, many of which arrived with the office building boom of the 1970s and '80s. The prevailing thought then was that people should walk around town on a system of elevated pedways, some of which still exist between Bunker Hill Towers and the Westin Bonaventure, the World Trade Center, the Marriott and the Bank of America building.

Also, as author and retired college professor Bob Herman noted, the structures' architects and developers too often were driven by ego. They created buildings that, while (sometimes) aesthetically pleasing, did not sufficiently take into account the surrounding neighborhood and its growth. Too often they slapped down long, blank walls, unattractive and unpleasant for the pedestrian. The east façade of the new Caltrans building pictured with the May 15 article is just the latest example. (Is it just us, or does everyone think "Death Star" when they see the building now, more nakedly ominous since the block in front of it has been cleared?)

The residential revolution provides an opportunity to avoid old mistakes. The new crew of developers and architects, as well as the city officials approving the designs, must remember that, while they are building residences, it's the community as a whole that will create a home. Many other issues - retail, nightlife and solving homelessness - will fit into this, but those making the biggest investments have responsibilities that spill onto and beyond their sidewalks.

It's not enough just to spend money and offer amenities. For Downtown to succeed, it also needs to be a place where people will want to step out of their buildings, activate the sidewalks, congregate with their neighbors and walk. Yes, walk in L.A.

[LongBeachUrbanist]

ATTENTION! SMN at SSC.com has a photo that shows ground finally being broken for the Concerto condo proj...

Nothing better than seeing another deadzone parking lot bite the dust!

That's great news! :banana: :banana: :banana:

This development is at the center of a growing arc of development that includes Hanover, LA Live and the Market Lofts. These projects are going to go a long way toward filling in the huge gap between Staples Center, South Park and the Financial District!

Cheers!!! :cheers:

[LAMetroGuy]

There are some new Concerto renderings on the Astani website, I would post but they are macromedia flash. Anyone know how?
http://www.astanienterprises.com/


It is just one new rendering, the rest have already been posted... I like this new rendering!

http://img.photobucket.com/albums/v600/rpulido/newconcerto.jpg

[Steve2726]

^^^^ That's great, thanks.

[LongBeachUrbanist]

It is just one new rendering, the rest have already been posted...

I hadn't seen the following, so I'm posting them, just in case.

Figueroa streetscape (I think):
http://static.flickr.com/62/156745420_b88bafcec0_o.jpg

Flower streetscape:
http://static.flickr.com/64/156740704_3d50654999_o.jpg

[citywatch]

^ I just realize something: the Concerto's tower (1st phase) will be the tallest bldg to be under construction in DT in something like over 13 yrs. That's true even in light of the Evo tower, which not only will have fewer floors but where I believe each one of its floors will be shorter than the Concerto's. Concerto's web site indicates each level will have ceilings that are 10 ft tall, which is more like a commercial/office bldg than a typical apt/condo or hotel bldg.

BTW, I'm not counting start of work on LA Live because its hotel/condo tower really isn't underway right now & will be phased in at a later date.

Another thing that's good about Concerto is that most of its units look like they'll have permanent walls around each bedrm, so its format won't be competing directly with the open loft layout of many other condo projs, inc the Skylofts, 1100 Wilshire & most of the units in the Ralphs Market Lofts.

[funhaus]

Thanks for posting those renderings. Very exciting!

[ferneynism2]

Here are some up to date pix inside the (Eastern Columbia).

Courtesy of Sunking@SSC.......

http://i51.photobucket.com/albums/f372/thesunking93/44.jpg

http://i51.photobucket.com/albums/f372/thesunking93/33.jpg

http://i51.photobucket.com/albums/f372/thesunking93/11.jpg

http://i51.photobucket.com/albums/f372/thesunking93/55.jpg

Walking away from the Clock Tower onto the Pool Deck. Once the framing is done for the gym, I'll show it which is just to the left.
http://i51.photobucket.com/albums/f372/thesunking93/22.jpg

This guy is about 8' away from the furthest point out in the Clock Tower following the steel rafter.
http://i51.photobucket.com/albums/f372/thesunking93/77.jpg

The highest point
http://i51.photobucket.com/albums/f372/thesunking93/66.jpg[/QUOTE]

[ThreeHundred]

Wee!

Another parking lot in downtown GONE!!

A few questions regarding Concerto:

1. How tall are the towers (stories/feet)?

2. Is everything under construction at once or will Concerto be built in phases?

[LosAngelesSportsFan]

i beleive the latest figure i heard was 30 stories wijth 10 foot ceilings and its two phases, first phase is one tower and the 7 story building, the next phase is the second tower.

[colemonkee]

I emailed the architect a couple of months ago and he told me that the two towers are 27 stories high and 355 feet to the highest point. That was a while ago, and I'm not sure if that has changed.

If you look at the diagrams, the units have 10' 4" floor-to-ceiling heights in the units themselves. If you factor in a 6"-12" concrete floorplate, you get approximately 11 foot floor heights for the residential floors.

[ggmike]

I'm wondering if anyone else here has heard the good news on http://www.downtownnews.com/ that Trader Joes is going to open up a store in downtown. Does anyone here have any info on where it's going to be located?

[danparker276]

I heard a rumor around 6 months ago from someone in Medici, that it might be in the empty retail spots they have. That would be great, but it probably hasn't been decided.

[funhaus]

I'm wondering if anyone else here has heard the good news on http://www.downtownnews.com/ that Trader Joes is going to open up a store in downtown. Does anyone here have any info on where it's going to be located?

Actually, that downtown news article was very deceptive. The headline said "Trader Joe Comes Downtown" -- meaning Joe Coulombe, the store's founder -- not "Trader Joe's Comes Downtown" (which is what everyone is waiting for).

Boo on downtown news for playing on our emotions for the sake of a cheap headline. :hell:

[colemonkee]

I was really pissed when I read that headline then the accompanying article this weekend. Expect some nasty letters from residents in next weekend's issue...

[citywatch]

I heard a rumor around 6 months ago from someone in Medici, that it might be in the empty retail spots they have.
Retail spaces in that type of bldg & location are a good example of why devlprs of condo & apt projs should be very careful when considering whether to include commercial tenants in their bldgs or not. A Trader Joe's prob would be one of the few type of lessees that could make a go of it in the Medici, meaning ppl would be more likely to go out of their way to shop at that particular store located in a bldg otherwise off the beaten path. The only problem is does the Medici, or Palmer's other bldg, the Orsini, which also has some unleased retail space, have enough convenient parking for shoppers?

[yakumoto]

The only problem is does the Medici, or Palmer's other bldg, the Orsini, which also has some unleased retail space, have enough convenient parking for shoppers?

Why would it matter whether or not it has parking? I thought the theme of all this development was to get people out of their cars.

[LAMetroGuy]

the location of medici is not ideal for most of the residential developments in downtown (historic core/financial/south park) to walk to .... a more central location would be better for a trader joes... maybe the entire retail space under Mandel Lofts for example, that place would make for a great trader joes.

[yakumoto]

Yeah, cause its better having a few centrally located supermarkets rather than smaller neighborhood markets despersed throughout downtown, just as long as there is plenty of parking at those supermarkets, and in turn, plenty of parking at the new developments.

And you're right, mendici is on the edge, bordering those non existant neighborhoods to the west...

[LAMetroGuy]

those "non existant" neighborhoods won't shop at trader joes... plus in that other "non existant" neighborhood there is already a food-4-less... so yeah I am right!

[LongBeachUrbanist]

Hmmm. The "non-existent" neighborhoods are the ones with actual people living in them, whereas the neighborhoods we're talking about (South Park, Historic Core, etc.) are only just getting residents. Interesting. :rolleyes:

How odd that the "non-existent" neighborhoods already have their own supermarket. What are they thinking? :shrug:

To all who haven't gotten it yet, Trader Joe's is not coming to Downtown L.A. Not any time soon, anyway. The headline in the Downtown News is misleading. The founder of Trader Joe's was in DTLA to discuss his accomplishments.

It is definitely better to have multiple small neighborhood markets, than to have one big market that forces people to trek up to 2 miles to just to get groceries. But the economic reality is that DT's neighborhoods are just ramping up, and I think the idea of having separate markets in each DT neighborhood is not economically feasible at this time.

[LAMetroGuy]

I am not sure why everyone is so confused??? I read the article and it was very easy to see that they weren't talking about a store coming to downtown????

[Easy]

Yeah, cause its better having a few centrally located supermarkets rather than smaller neighborhood markets despersed throughout downtown, just as long as there is plenty of parking at those supermarkets, and in turn, plenty of parking at the new developments.

And you're right, mendici is on the edge, bordering those non existant neighborhoods to the west...

I'm with you. I'd rather see more, smaller stores than a few big ones. Something like D'Ag's in NYC would work well in DTLA. Well maybe not now, but in a few years it might.

[yakumoto]

It is definitely better to have multiple small neighborhood markets, than to have one big market that forces people to trek up to 2 miles to just to get groceries. But the economic reality is that DT's neighborhoods are just ramping up, and I think the idea of having separate markets in each DT neighborhood is not economically feasible at this time.

Thats pretty much my point. I just hope that smaller markets will be able to open depite the competition with larger supermarkets.

[deehrler]

Thats pretty much my point. I just hope that smaller markets will be able to open depite the competition with larger supermarkets.

It would behoove developers to set aside some retail just for that purpose. It would certainly make their project more attractive....even if they have to discount the lease as an incentive.

[LongBeachUrbanist]

FWIW, the entire surface of the Concerto site has been removed, so that dirt is exposed everywhere. I don't remember whether or not the light poles were still there.

[citywatch]

^ I'd be very puzzled if all the blacktop has been scrapped off without those dumb looking poles also being tossed out with everything else. And the bigger question is why hasn't the large billboard on 9th St, which I'm guessing still sits there, been removed by its owner? It's things like that & those poles that make parking lots in the hood look a lot scroungier than they'd otherwise be.

[citywatch]

Why would it matter whether or not it has parking? Like it or not, a lot of ppl, even those who want to be totally dependent on public transit, or bikes or skateboards, do require the service of a car on occasion, esp if they don't want to lug bags of groceries over several blocks. And most ppl don't want to (or wouldn't be allowed to) haul their stuff in grocery carts the way homeless ppl do. And if you've got frozen food in your bags, you don't want to dawdle getting to your refrigerator.

[BrighamYen]

^ There are actually these really kinda funky carts that people in urban areas (including LA) will use to lug around "stuff" including groceries. I bought one from a swap meet recently (but gave it to my former boss as an urban gift). They're usually black and looks like a cage on wheels. It would look a little odd right now using it because we don't really have the predominant culture to use them, so I'm assuming a lot of people would probably feel insecure pushing/lugging one from Ralphs back to their loft.

[BrighamYen]

It would behoove developers to set aside some retail just for that purpose. It would certainly make their project more attractive....even if they have to discount the lease as an incentive.


I was actually looking for a small grocery store for one of the new condo developments downtown. The owner expressed interest in having a "New York-styled shop" on their ground floor retail space. I was hoping I could find a Korean shop owner to head one since they seem to be doing that already in Koreatown. Anyone know someone who might want to open a business like that up in Downtown LA? :)

[ksep]

^ I'd be very puzzled if all the blacktop has been scrapped off without those dumb looking poles also being tossed out with everything else. And the bigger question is why hasn't the large billboard on 9th St, which I'm guessing still sits there, been removed by its owner? It's things like that & those poles that make parking lots in the hood look a lot scroungier than they'd otherwise be.
my guess would be that mabe it is not necessary to remove the billboard right away, because it is in the location where the tower for the second phase will be build later on. :shrug:

[LongBeachUrbanist]

I was actually looking for a small grocery store for one of the new condo developments downtown. The owner expressed interest in having a "New York-styled shop" on their ground floor retail space.

Makes me think of the little market in the OBD on Main Street. I'd definitely like to see more of that in Downtown L.A.

Also, 7-11 and hopefully Famima will be coming to Downtown soon. This will add a few options for places to buy food/convenience items (e.g., midnight toilet paper).

[danparker276]

I think you can order online from some supermarkets. Hopefully that Ralphs will be able to.

[Wright Concept]

^ There are actually these really kinda funky carts that people in urban areas (including LA) will use to lug around "stuff" including groceries. I bought one from a swap meet recently (but gave it to my former boss as an urban gift). They're usually black and looks like a cage on wheels. It would look a little odd right now using it because we don't really have the predominant culture to use them, so I'm assuming a lot of people would probably feel insecure pushing/lugging one from Ralphs back to their loft.

Those carts are a God-send for me, I recently moved to Central City West as it's called and using it going grocery shopping is super convienent. Plus when you're done it folds flat so it only takes about 8" of space.

Personally, I don't give a fat-rats ass what other's think because I'm not the typical hyper self-conscious person who needs it to be trendy on order to get one. True there is a homeless population right now, but from the looks of it they don't roll carts around everywhere they go they carry a lot of their stuff. But if you're paying for parking and trying to hold the elevator to lug all of your groceries to your apartment and or struggling trying to carry 3 or 4 large bags of things down the street I would think folks would feel more insecure trying to balance that while opening the door to their loft or apartment or making sure stuff didn't fall out while taking them home.

BTW if folks don't like the standard carts, The Container Store in Pasadena sells carts like that with 4 wheel steering and in stainless steel grey for $50-$60.

[colemonkee]

Answers to lots of questions:

LAB on the urban carts - a lot of people have them right now. Many people in my building use them to cart groceries home from Mitsuwa in LT.

Local Groceries - There are two little local markets/convenience stores in the OBD on Main St., right across the street from each other. They do pretty well, and are open until 9pm every night. It'll take some more developments to open for them to stay open later, though. Also, the retail space at the bottom of the Douglas lofts is large enough for a mid-to-small sized grocery store, and is being marketed as such. So far no takers yet.

Billboard at Concerto: That billboard will have to come down, and fairly soon. According to the plans I've read and seen, there will be three to four levels of underground parking, which I assume will take up the entire lot. The entire base will most likely be part of Phase 1, with the actual tower going up on top of the base as phase 2.

[colemonkee]

Hey danparker, when are you scheduled to move in? Should be sometime soon, no?

[citywatch]

Interesting comments about the carts & the small mkts on Main St in the OBD.

One of the few convenience grocery stores in DT that I've heard about for yrs is located in the Bunker Hill Towers & which I believe prob dates back to the late 1960s. The ppl who rented apts in those bldgs after their grand opening in 1968 really were the ultimate pioneers of the hood-----imagine how little existed back then for blocks & blocks around.

And getting rid of that billboard on 9th St between Fig & Flower is an improvement in its own right, which is the reason I definitely hope it won't remain standing there until Concerto's second phase.

[RAlossi]

One of the few convenience grocery stores in DT that I've heard about for yrs is located in the Bunker Hill Towers & which I believe prob dates back to the late 1960s. The ppl who rented apts in those bldgs after their grand opening in 1968 really were the ultimate pioneers of the hood-----imagine how little existed back then for blocks & blocks around.

Well, taking into account that a whole neighborhood existed just a decade or so earlier, the fact that people lived on Bunker Hill in and of itself isn't extraordinary. But after the whole place was cleared out, I guess it would be kind of "pioneering" of them to live there at that time.

[danparker276]

Yeah, Move ins should be starting July 17th. I should be one of the 1st to move in since I'm on the bottom floor. Maybe I'll be in for that July 22nd party in downtown.
Got this email today:

We are delighted to announce that we are approaching the completion of your new residence at 1100 Wilshire!

We anticipate move-ins from the 17th to the 25th floors to begin in the middle of July 2006. Please keep moving plans as flexible as possible, since experience has shown us that this completion date can still be somewhat of a moving target, even at this point, due to final building inspections from the fire department.

As of now, we should already have your loan approval on file with Wells Fargo* (* formerly Meridian Home Mortgage). If you have not yet received this loan approval, please contact us immediately. We will do our best to assist you in this final step.

Per your Purchase Agreement, you are required to complete an application with Wells Fargo* even if you plan to use an outside lender. Wells Fargo* will be offering you $1,000 toward your closing costs, and has full project approval to begin closing escrows when the building is ready for occupancy. Please be aware that most outside lenders may be unable to do this, further delaying your closing and putting you in violation of your contract. To speak to your loan officer at Wells Fargo*, please contact Erica Muro at 805-639-2373 or Robina Peanh at 805-639-2363.

A representative from Forest City will soon be contacting you with an official "New Home Orientation" date. This date is given to us by construction and will formally signify the completion of your home. Upon receipt of this information, we will be able to give you a more precise closing date.

Since 1100 Wilshire is a high-rise building and we will be closing 12 units on a floor concurrently, moving in will need to be very precisely orchestrated. We will need to efficiently coordinate use of the loading dock and freight elevator to make your move run smoothly. Please advise the sales staff as soon as possible if you plan on moving in immediately upon the close of escrow, or if you are not planning to move right away. This information is very helpful to us in coordinating everyone's move. At the same time, feel free to let us know if there is a reason that you need to get in as soon as possible. We will make every effort to coordinate the moves to accommodate your needs.

We, at 1100 Wilshire, want your home purchase to be as trouble-free as possible. As we near completion of your residence, we realize you may have additional questions, concerns and needs. Please let us know how we can make your move "above L.A." as easy and comfortable as possible.

Sincerely,

The 1100 Wilshire Sales Team
Bob Barber, Michele Fitzgerald, Elisa Taylor
(213)482-9000

[citywatch]

But after the whole place was cleared out, I guess it would be kind of "pioneering" of them to live there at that time.
Even more so since at that time far more ppl preferred living as many miles away from DT & even the city in general as possible. Even today lots of ppl still head out to the burbs or want to live closer to hoods around, for instance, UCLA instead of USC.

Back in the 1960s the only folks who called DT home definitely were mainly elderly pensioners or alchys forced to live in SROs. That meant the BH Towers for a long time were the only location in the hood that offered housing to ppl who had a few $$ & the mobility to pick & choose from any number of hoods throughout LA. Much of that remained true until as recently as the late 1990s.

[blogdowntown]

Local Groceries - There are two little local markets/convenience stores in the OBD on Main St., right across the street from each other. They do pretty well, and are open until 9pm every night. It'll take some more developments to open for them to stay open later, though. Also, the retail space at the bottom of the Douglas lofts is large enough for a mid-to-small sized grocery store, and is being marketed as such. So far no takers yet.

There are more than just that. The market on the Spring St. side of the Hayward Hotel is pretty well stocked (and happens to be right next door to me). On the 6th St. side there's another store that's smaller, but has the essential milk and eggs, etc.

Then there's the market in the Santee Court complex. I haven't been in, but I've heard good things.

And obviously you have Rite-Aids at 5th/Broadway, 7th/Hope and 7th/Los Angeles. And my cousin used to buy pasta and such from Big Lots, on 7th between Broadway and Hill. You aren't going to find any perishables there, but they've got a surprising assortment of packaged foods.

[ksep]

there is also another small market on the east side of los angeles street, just around the corner from santee court.

[colemonkee]

Per your Purchase Agreement, you are required to complete an application with Wells Fargo* even if you plan to use an outside lender. Wells Fargo* will be offering you $1,000 toward your closing costs, and has full project approval to begin closing escrows when the building is ready for occupancy. Please be aware that most outside lenders may be unable to do this, further delaying your closing and putting you in violation of your contract.
This is the kind of shit that pisses me off, and frankly should be illegal. Basically they are saying "you are 'free' to go with another lender, but we will effectively box them out by not approving them to close escrow in time. Furthermore, we will use the veiled threat of violating your purchase contract to scare you into using our preferred lender, who is probably giving us a kickback on percentage points".

Countrywide tried to do that to me before, and I pulled out of the deal once they laid out all the 'details'. It's a passive aggressive way to strong-arm you into going with a particular lender, and a direct slap in the face to a free market system.

Sorry, [end rant]

DanParker, congrats on your new home. I'll bet you can't wait to get in there!!

[danparker276]

Not everyone went with the prefered lender.
I did because I could lock in the rates from last september and it didn't cost me anything.

When talking to the sales team about getting an outside lender, they basically said make sure they know the building. The wording in the email sounds bad " most outside lenders may be unable to do this". They are basically saying, some loan companies might not come through for this building.

[colemonkee]

^ I got that warning too. It has something to do with high rise condo buildings that are also mixed use (aka retail) being more risk and more paperwork for the lenders. But with more and more condos selling around the country, a lot of lenders are becoming quite familiar with the process. Countrywide, Wells Fargo and Chase have divisions that specialize in condo financing.

But on to better news, from DT News...


Union Bank & Trust Conversion Moves Ahead

With its recently announced $28 million construction loan from Bank of America, Meruelo Maddux Properties is moving ahead with the adaptive reuse conversion of the Union Bank & Trust Building at Hill and Eighth streets into 91 loft-style condominiums. Meruelo Maddux, which owns dozens of properties and also has plans to build a $120 million condominium tower in South Park, purchased the landmark building last year for $12 million. The conversion is expected to cost $34 million. Meruelo Maddux has also formed its own general contractor, Meruelo Maddux Construction, Inc., to ensure the project's scheduled completion in August 2007.

page 2, 6/5/2006


What this says to me is that Meruelo is finally getting into building something, and not just talking about it. The success of this project should be a good gauge of whether or not we can expect him to build the tower at 9th and Flower, especially since he's doing this one with his own contractor.

[RAlossi]

A little off-topic, but I was flipping through channels and saw a shot in a movie with some kids walking across a dust and grass-covered hill... then I saw the old Metropolitan Water District building... and then I saw LA City Hall... and then I saw the Westin Bonaventure Hotel... I couldnt for the life of me figure out what was going on or where it was, and then I realized that it was Bunker Hill post-bulldozing but pre-Cal Plaza. Talk about crazy to see a coast live oak tree and dust in what is now the center of finance in LA.

I think it was the 1978 film "Return from Witch Mountain." I couldnt really handle the plot (kids movie) so I just kept it on long enough to see the bits and pieces of DTLA.

[bobcat]

I think it was the 1978 film "Return from Witch Mountain." I couldnt really handle the plot (kids movie) so I just kept it on long enough to see the bits and pieces of DTLA.

Ooo,ooo, yeah, that was filmed all over DTLA. There used to be an old victorian house sitting on Alameda which was the kids' "clubhouse." Also, there was a scene of a goat leaping onto a car that was filmed at the corner of College and Centennial. Haven't seen that movie in a long time but I still remember those parts.

[Easy]

Bobcat, the first page could use a little updating when you get a chance.

Started construction: Concerto, El Dorado, Evo, James Wood Apts.

Recently completed: Elleven, Molino Street Lofts

No longer "recently" completed: Pegasus, Gas Co. Lofts

Dropped off the map?: Victor clothing lofts is no longer included in DTNews quarterly update. I think the previous update said that the developer was not returning their phone calls.

[bobcat]

OK, it's updated. A couple of questionable projects, like Medallion and Fig Central I will leave on the list until an official announcement is made regarding their status.

The reason I keep projects like Pegasus on the list is to keep a running tally of the number of units completed during the current construction boom.

[citywatch]

I saw this posted in the other forum under the subj heading about the impact of Chicago's new Millennium park on devlpt in the surrounding area. One thing that caught my attention was that some of the cheapest, smaller condos in that city are priced more reasonably than comparable units in DTLA. For instance, small studios at a new lowrise condo proj like the Savoy in Little Tokyo start around $480,000.


The most successful project to date is probably the Heritage at Millennium Park, a 57-story condominium tower completed 18 months ago on nearby Wabash Avenue with unobstructed views of the park and lake. The building, which has 357 units, sold out well before it was finished at prices ranging from $245,000 for an 800-square-foot studio to $3.5 million for a 5,060-square-foot penthouse.

....In July, Mr. Hanson will break ground on a second tower, called the Legacy, on a site two blocks south of the Heritage. Just over 60 percent of the 355 units have already been sold at prices ranging from $300,000 for an 875-square-foot one-bedroom to $7.8 million for a 9,301-square-foot penthouse.

The project that has caused the most stir architecturally is the Aqua Tower, an 80-story high-rise by the architect Jeanne Gang. It will consist of a 215-room hotel and 476 rental apartments on the lower floors and 263 condos on top. The building — which is at least 50 percent sold at prices ranging from $342,000 for an 674-square-foot studio to $2 million for a 3,100-square-foot penthouse — is to begin construction this fall and to be finished in 2009.


That means devlprs here either are making bigger profits or they face higher construction costs than in Chicago. I like to think it's the former, because that means there will be less excuse for new condo & apt devlpt in DTLA to not do very well in the future.

[Wright Concept]

^There is an existing large supply of this style housing all along the Lake Shore and most of it being built out in Chicago, about 2-3 years ago investors were concerned that they're were TOO many condos being built because it waters down the supply so much that the developer can't make a profit even when the entire building is sold.

Also with Chicago they are developing on a lot of sites that never had any development before with some reduced restrictions on building permits and zoning, thus keeping the prices of the units reasonable.

The reduced restrictions helps so that the developer does not to have so many trips to the zoning and building code department since each project had to fit a certain requirement and Floor-Area- Ratio. Also a lot of the same developers and architects are wisely building the projects with the same cookie-cutter layout and then modify it (an addendum clause) slightly with window facades and finishes. So that it simplifies the process, reduces costs and speeds up the project.

[danparker276]

Don't compare chicago to LA.
People in LA make more money and I've heard the weather is just a little different.

[Wright Concept]

Yeah, but they spend more on the same items because of Cost of Living so it's all relative.

[citywatch]

I just wonder how DTLA will compare with Chicago in the amt of demand for new housing, esp in highrise bldgs, because Chitown has way more of that than most cities in the US?

I like to think current profit margins for new condos in DTLA are high enough, that if demand does start to drop, devlprs will have some breathing space to lower their prices. If not, then we could be right back to the situation of only about 5 yrs ago, where almost no devlpr wanted to invest in new housing in the hood because the rate of return would be too low.

[colemonkee]

citywatch, I'm sure that land prices, the City of LA's inspection process, and seismic building requirements have a lot to do with the difference in price as well.

PV, almost none of the high-profile condo towers going up in Chicago - including the three mentioned in that article - are using "cookie cutter" designs. The closest I've seen to that are the Tides and the Shoreham, two buildings that are across the street from each other, and designed by the same architect. But the high profile projects (Trump, Waterview, Aqua, 340 OTP, Legacy, One Museum Park, 71 E. Huron, The Claire, etc) are all pretty unique designs that don't share too much with each other.

[citywatch]

I'm sure that land prices, the City of LA's inspection process, and seismic building requirements have a lot to do with the difference in price as well.
I hate to think LA's bureaucracy is worse & slower than Chicago's, but I'm sure living in earthquake territory has upped the cost of new construction here. However, I'd be surprised if land in DTLA, even today, is as pricey, or certainly more $$, than land in Chicago. But if that's the case, it's a sign that the wheelers & dealers in land speculation are causing a lot of distortion & screwing things up.

[Wright Concept]

citywatch, I'm sure that land prices, the City of LA's inspection process, and seismic building requirements have a lot to do with the difference in price as well.

PV, almost none of the high-profile condo towers going up in Chicago - including the three mentioned in that article - are using "cookie cutter" designs. The closest I've seen to that are the Tides and the Shoreham, two buildings that are across the street from each other, and designed by the same architect. But the high profile projects (Trump, Waterview, Aqua, 340 OTP, Legacy, One Museum Park, 71 E. Huron, The Claire, etc) are all pretty unique designs that don't share too much with each other.

"Also a lot of the same developers and architects are wisely building the projects with the same cookie-cutter layout and then modify it (an addendum clause) slightly with window facades and finishes."

I'll admit cookie-cutter is the wrong word, what I meant is that they already know what pieces the Building/Zoning will automatically look for so they take they're form and almost segment it into neccessary square foot modules and tinker and play with it until they reach the right combination(s) of cost effectiveness and ease of constructabilty.

That's for high profile projects which have been in the works behind the scenes for at least 3-4 years, I know cause my IPRO personally did a design project using renewable energy for Trump Tower in 2002 and they were going back and forth with the building dept. Jeanne Gang/Mark Shiendel were my professors at IIT and they have been working on the Aqua Design for a while from 2002. The other sites I know for a fact have been in the works from 2002 cause they guest lectured in a High-Rise building design course I took in 2002. They are the exception to the rule because of their profile, but even still the basic floor plates of how much square footage and distance to nearest emergency fire escape, there's more but my brain is fried right now,
Thus making those pieces easier to go through the process.

[colemonkee]

^ I hear ya. From your original post I had read that you we're suggesting that they were using cookie cutter designs, then only altering the window facades and finishes. I think we're on the same page though. :cheers:

Back to LA!!

[RAlossi]

There's a bunch of construction material and equipment on the former Toluca Yard/Belmont Tunnel. Looks like this project (Northwest Gateway by Meta Housing) is getting underway now. That area is pretty run-down and could use some more investment.

[Easy]

There are more than just that. The market on the Spring St. side of the Hayward Hotel is pretty well stocked (and happens to be right next door to me)...Then there's the market in the Santee Court complex. I haven't been in, but I've heard good things.

I've been to both of those. The Santee market is maybe a little larger, but was sparsely stocked when I went there a few weeks after it opened. Overall it was comparable to the market next to you. Maybe it's gotten better stocked over the last 6 mos.

[bobcat]

New 31 story Condo Tower Proposed for Grand/Cesar Chavez. Also of interest is that the owner says the Burger King currently at that location is one of the top performing franchises in LA.

The New Italian Job
by Jon Regardie

In the early 1900s, Ralph and Lucia Smaldino left Bari, Italy, and immigrated to the United States. The couple settled on North Broadway in the neighborhood that today is Chinatown, but then was the center of Italian life in Los Angeles. They were mainstays of the Italian community and worshipped at St. Peter's church across from Taylor Yard. In later years the Smaldinos and their children lived on College Street and nearby Solano Avenue.

Now, more than a century after the Smaldinos' arrival, two of their grandsons, Larry and Ralph Cimmarusti, are seeking to mark the family's memory. They're doing it in a big way, as they intend to erect a 31-story condominium complex about a mile from Ralph and Lucia's first home. The proposed Lucia Tower would rise at the corner of Grand and Cesar E. Chavez avenues.

While early in the planning stage, Larry Cimmarusti said the project, which would rise on the plot where a Burger King now stands, would hold 200 condominiums and 16,000 square feet of ground floor retail. The Cimmarustis are in the entitlement phase and have been meeting with City Councilman Ed Reyes, whose First District includes the site. If all goes according to plan, they would break ground next summer and open in 2009.

While this would mark their first major Downtown project, the Cimmarustis, still prominent in the Italian-American community, have relationships with some of the area's most powerful players. The Lucia Tower would be a short walk north of the Cathedral of Our Lady of the Angels, where the bell tower is named for the Cimmarustis. They worked with Cardinal Roger Mahony during the cathedral's evolution, and Larry and Ralph's parents are buried in the building's mausoleum, a rare honor.

"Our family sponsored the bell tower. That kind of gives you a little bit of the passion that we have for the revitalization of Downtown Los Angeles," said Larry Cimmarusti during a recent interview in the Burger King that he and his brother opened about a decade ago. The restaurant would be torn down, freeing up the 60,000-square-foot plot that is zoned for a high-rise.

"When you have a piece of property like this and it has the roots that we have, you can't help but get excited," Cimmarusti added. "Our grandparents came here in the 1900s knowing nothing and worked hard and raised good families, and to see us do this, this is exciting. This is really exciting."

Building Specs

Over the last three decades Larry, 58, and Ralph, 54, have built a fortune through several enterprises. They own 90 Burger Kings (58 of them in the Los Angeles area) as well as some Tony Roma's and Original Roadhouse Grill restaurants. Their L&R Construction arm, which would be the contractor on the Lucia Tower (the actual development firm is named Lucia Development), has built multiple large projects, including a shopping center in Woodland Hills with a Whole Foods. Another shopping center is now under construction in Lacey, Washington. They have done high-rise office buildings and some apartments, but this would be their first condominium tower, said Cimmarusti.

The brothers' various ventures employ 2,200 people. They recorded gross revenues of $115 million in 2005, said Cimmarusti.

Designs by Archeon Group show a soaring tower with 730,000 square feet of space. Street-fronting retail would occupy the ground floor (Cimmarusti said he would like to attract a high-end restaurant), while the second through fifth levels would hold 524 parking spaces. The 200 condominiums would be on the sixth through 31st floors. The one- to three-bedroom units would range from 900 to 2,400 square feet.

Cimmarusti said the construction price, issues of an affordable or workforce housing component and the amount the units would sell for have yet to be determined. However, there are several Downtown developments with similar specifications: In South Park the 19-story, 236-unit Evo, a new market-rate construction project by the South Group, is estimated at $80 million. In City West, the 228 units in the 1100 Wilshire project, a transformation by a trio of development firms of a 27-story tower originally designed as office space, will start at $459,000.

Christopher Pak, a principal of the Archeon Group, said one of the Lucia Tower's standout features would be the views. Residents whose units face north would be able to see Dodger Stadium, while those with southern exposure would be able to glimpse the plaza of the Cathedral and see the rest of Downtown.

Pak also pointed to the development's location at the head of Grand Avenue, a street undergoing tremendous change. Along with the Cathedral and the Walt Disney Concert Hall, the corridor will hold developer Related Cos. $2 billion mixed-use complex, which includes a skyscraper being designed by Frank Gehry.

The Lucia Tower would also boast a 30,000-square-foot podium on the sixth floor. The expansive outdoor area would hold a swimming pool, cabanas, vegetation and possibly a putting green, said Anthony Simos, another Archeon Group architect working on the project.

"It's going to modernize the area," predicted Simos.

Reyes, whose district is seeing a flurry of development, called the Lucia Tower an "exciting project" with "landmark potential." He said he is working with the Cimmarustis and will seek to make the project available to people of mixed incomes.

"I'm working with them to see how we can make it as accessible as possible without hurting its financial prowess, if you will," said Reyes. "I'd like to be able to see our police department personnel live there - our men and women in blue. I'd love to see fire department personnel. Our teachers; the people that make a community a community. So yes, if we can get to a point where we are stimulating new units that actually make the city work, I think it would be a win-win for everyone."

The Lucia Tower would rise in the center of several developing but vastly different neighborhoods. To the south, the Grand Avenue project is bringing an assemblage of high-rises, with retail and residential aspects. To the west, the second phase of developer Geoff Palmer's Orsini complex is under construction. The first of the 566 luxury apartments at Sunset and Figueroa are scheduled to open next May.

Meanwhile, nearly a dozen projects with a residential element are planned for Chinatown. Though not all are expected to make it to market, they are ushering in a change for the historic neighborhood. Pak said he hopes the Lucia Tower will link effectively to Chinatown.

"We want to make sure that the project reflects not so much the flavor of Chinatown, but that it pays respect and we do a quality project," said Pak.

Cimmarusti, meanwhile, notes that the arrival of the Lucia Tower would mean the end of one of his highest-performing restaurants. However, he described the opportunity as too good to pass up.

"It's been one of the best volume Burger Kings in Los Angeles. It's a great location," he said. "It's just like everything else, the value of the property became greater. This is 60,000 square feet of unrestricted high-rise with a little Burger King on the corner. So it makes sense to develop it."

[bobcat]

OK, I'm trying to figure out which project this one is. Is it one that we know of already or is it new? The tallest structure would be 38 stories.

CRA Approves 875 High-Rise Downtown Condos
By - 6/16/2006
Los Angeles Business Journal Staff

The Community Redevelopment Agency of Los Angeles has approved a plan by developer Pacific Atlas Development Corp. to build three high-rise condos totaling 875 units near the Seventh Street/Metro Center Metro stop.

The project, which still needs City Council approval, would be built in three separate phases on three parcels at 770 S. Grand Ave. and 717 and 721 S. Olive St. that now comprise a surface parking lot.

The tallest structure would span 38 stories and the smallest 15. Pacific Atlas previously sought to build two office buildings on the parcels in the early 1990s before the region’s recession halted the plans, according to a CRA release.

“This project provides a number of significant and dramatic benefits,” said CRA Chairman William H. Jackson in the release.

The project will include a 22,225-square-foot pedestrian walkway connecting Grand Avenue and Olive Street and 36,000 square feet of retail space for neighborhood-oriented businesses.

The agreement also calls for Pacific Atlas to contribute $1.5 million to the Skid Row Housing Trust to help develop the 115-unit Abbey Apartments and 76-unit Charles Cobb Apartments, both on South San Pedro Street.

[SD_Phil]

^Sounds like this tower has a good chance of being built (and on time) given the history behind the Cimmarusti brothers and their ties to downtown. Interesting. Thanks for finding the article.

[citywatch]

The project, which still needs City Council approval, would be built in three separate phases on three parcels at 770 S. Grand Ave. and 717 and 721 S. Olive St. that now comprise a surface parking lot.
:whatthefuck:

HUH??! Those addresses are the location of Astani's 8th & Grand proj, the parking lot that was cordoned off not long ago & that some (inc me) speculated was being shut down as a staging area for the Concerto towers. Then things got really interesting when someone at SSC posted that he'd been told Astani's proj at 8th & Grand really was going to get underway next month. Also, the article's description of the proj sounds exactly like Astani's 8th & Grand too.

I don't get it. I hope the reporter got his facts & figures all screwed up. If not, that means there's no way actual devlpt can get underway anytime soon on the big deadzone south of the Brockman/coulter/mandell. But, then again, Pacific Atlas Devlpt Corp is no where to be seen in this bit of info from last yr. Or are they joint venturing with Astani? Did Pac Atlas sell their land to Thermo, which in turn sold it to Astani?:


Meanwhile, Beverly Hills-based real estate investment firm Astani Enterprises has agreed to pay Thermo Cos. $38 million for a 129,000-square-foot parking lot bounded by Seventh and Eighth streets and Grand Avenue and Olive Street, according to sources close to the deal. The firm's principal, Sonny Astani, is paying nearly $295 a foot for the land. The price closely matches the $30 million Astani paid in September for a 100,000-square-foot parking lot at the southwest corner of Figueroa and Eighth streets. As with the earlier purchase, Astani is planning to entitle the land for a condominium project of an unspecified size, the sources said.




And what's with this? Are the problems with the Axis condo proj similar to the problems with the Brockman bldg?:


Axis Put on Hold

Condo Buyers Surprised to Receive Refund Offers, As Development's Future Is Uncertain

by Andrew Moyle

Mere months before their expected move-in date, about 40 expectant buyers were FedExed offers last week to pull out of the new condominium development Axis at Union Station. Developer Standard Pacific Homes tendered full down payment refunds, along with $8,500 per unit for relocation and other costs. Last week buyers at Axis at Union Station were told the condominium project would be delayed. Developer Standard Pacific Homes offered them full down payment refunds and $8,500 "transition packages." Photo by Gary Leonard.

In a statement issued Thursday, Alan Boeker, president of Standard Pacific's Los Angeles division, blamed unspecified delays beyond the company's control for a holdup in acquiring title on the complex at Alameda Street and Cesar E. Chavez Avenue, which was expected to begin move-ins this summer.

"The situation is sufficiently serious that we have stopped new sales at the project. We chose to advise our buyers right away of the situation and offered them the option to withdraw," Boeker wrote. "All of our buyers signed disclosure statements that made it clear that we had yet to acquire title to this property."

In addition to the down payment refunds, the company pledged an additional $7,500 to augment each buyer's escrow account. Standard Pacific also offered a $1,000 American Express gift card to each would-be buyer. The buyers were also promised access to real estate advisors to help them find new accommodations, as well as priority access to other L.A.-area Standard Pacific condominiums.

"It is our hope that this transition package will help minimize any inconvenience they have experienced and help them find a new home quickly. I believe this is one of the strongest transition packages ever offered," Boeker said in the statement.

Though the reasons behind the company's decision remain unclear, buyers had much to anticipate. The first phase of the nearly complete $34 million, five-story, 272-unit complex designed by GMP Architects is close to Union Station, offering uniquely easy access to myriad rail and bus services. Listed prices for the transit-oriented development had started in the low $400,000s for the studio, one- and two-bedroom units. A second building was slated to open later this summer.

The company's parent corporation, Standard Pacific Corp., had suffered a rough start to the second quarter of 2006. According to a June 2 company press release, net new home orders dropped 41% in April and May from the same period last year, due in large part to a jump in the company's cancellation rate and softening in the company's larger markets, the release said. But the buyout offer was not related to market issues, the company insisted last week.

"It has nothing to do with softening," said Alison Banks, director of sales and marketing for Standard Pacific Homes. Instead, she pointed to "great uncertainty" surrounding the project. Neither she nor Boeker would elaborate. That lack of information regarding the project set off a round of speculation last week among those looking to buy.

David Coplen, a litigation case manager with the Downtown office of law firm Howrey LLP, and his wife had an appointment to view the complex the weekend before the FedExes went out. He arrived expecting a tour, and instead found the sales office closed. "I assume this is as a result of slow sales, but have no real information," Coplen wrote in an email.

The refund offer marks an abrupt turnaround for the development. As late as May, Standard Pacific had touted that half the residences in Axis' first phase had sold in their first day on the market in March. Sales in Downtown were still relatively strong that same month, said Delores Conway, director of the Casden Forecast at USC's Lusk Center for Real Estate.

But interest rates have risen since then, and the real estate community, Conway included, will be watching closely as the Federal Open Market Committee weighs a possible 17th straight rate change at its meeting later this month. "Just look at the stock market," Conway said. "There's a lot of uncertainty out there right now."


:whatthefuck:

[DJM19]

"This is 60,000 square feet of unrestricted high-rise with a little Burger King on the corner. So it makes sense to develop it."

I LOVE the way this guy thinks.

[LA420]

jeezzzzz this is scaryyyyy :uhh: !!!! About a couples of days ago I was thinking about this property. I was thinking why Burger King was still sitting there when I thought it didn’t do much business but I guess I was wrong on that part but anyways going back to my thinking. I just thought how it would be nice to develop this land and get rid of this fast food chain and have a highrise on this location and I also thought about some other things around that area at the same time but I wont get into that right now. I also thought having a highrise there, that it would be nice that it would be a affordable housing and damn would you believe it it will be a mixed income housing, someone is reading my mind. Plus if family's moving in into this highrise they can send their kids to the high school down the block and plus there will be more high densely development in this area. I think the Orsini is a joke and I wish the orsini people would think high (densely) and instead of a suburban type apartments complexes. First building looks very empty! their stupid in my book! but high 5's to these brothers who are going to bring this highrise called the Lucia Tower here. I cant believe the orsini people are going to build more apartment complex’s when they have the land to build several highrises, again there stupid!!:yuck:. MY thinking of this area has become true, scary but awesome!!! Highrise will be the future and no more low rise apartment (low rise condos) complex estates leave it in suburbia.

[Steve2726]

Is this the only known photo of this project? The Archeon website has nothing at the moment either.
http://www.archeongroup.com/

http://downtownnews.com/content/articles/2006/06/19/front/photo2.jpg

[deehrler]

Is this the only known photo of this project? The Archeon website has nothing at the moment either.


There is a rendering on page 10 of Downtown news, but they did not put it on their web page. Maybe someone can scan it?

[deehrler]

The news about the Axis concerns me. I have a feeling that owner's decision may have more to do with the real estate market drying up than anything to do with title. I know for a fact that real estate sales are in a near state of collapse in suburban markets where prices are begining to tumble. My hopes have been for the Downtown market to withstand an implosion. Maybe it is not doing so well after all. Or is it?

Could Standard Pacific be going into a 'safe mode'? As a company they are heading into an iceberg. In a panic to reduce damage, they may have decided to go back to rental. It should rent quickly at which time they can flip it at a nice profit. It is a company that needs cash and it may not have the time to market condos in a soft market. This property may be one of the few assets that they have that they could sell at a profit.

Whoever ends out owner of that property will have a gold mine 20 years from now. I can't say the same for the thousands of empty suburban homes that are sitting unsold in their inventory.

I believe that we will see more of this sort of condo-to-rental activity where the developer, in need of a quick cash-out, finds the project more marketable in bulk rather than individually.

I hope.

[BrighamYen]

Well if they didn't sell it for a ridiculous price, then perhaps people would still be buying. This isn't Manhattan yet. You can't justify quasi-Manhattan prices is what a lot of people are thinking now. Who knows what will happen.

Let's just pray Ralphs opens up on time. That's the next "Disney Hall" we need. It's a drink of refreshing water as we trek through a relentless burning heat of the Sahara desert. Reaching the true urban oasis will still take years.

[citywatch]

Could Standard Pacific be going into a 'safe mode'? As a company they are heading into an iceberg. In a panic to reduce damage, they may have decided to go back to rental. I sure hope not. I thought there was some legal stipulation that if buyers aren't able to move into their condo by a certain date, the seller is vulnerable to lawsuits, or something like that. IOW, I'm hoping that just as the Brockman is taking way longer than expected to be completed, other devlprs, inc the ones building Axis, are running into the same problem. However, when a builder is forced into cancelling sales contracts, that's sounds very extreme.

[citywatch]

It's good to know that under the Elleven/Luma/Evo subj heading, recent postings describe preview sales of condos at Evo as doing very well on Sat.

By contrast, I'm not too happy to read this at la.curbed.com:


Downtown: Not sure how much stock to put in this, but a little birdy tells us MJW Investments is apparently having some difficulty selling units in Santee Court, as in "they can't sell any units at santee court to save their lives..." They've also just put out an RFQ for the Sears building in Boyle Heights.


Someone on their message board says:

Sales at the Little Tokyo Lofts, directly on Skid Row, are rumored to be sucking as well, with only about 40% of the Units allegedly sold even though the lofts there have been for sale for quite some time.


I got this from yesterday's LA Times:

As sales of single-family homes have slowed, so have those of condos. As of April, in downtown Los Angeles, where the loft and condo market has been booming, the average days on the market rose from 49 days to 57, at an average sales price of $598,242, according to Condosource, a boutique real estate brokerage firm that specializes in Los Angeles condos and lofts.

Condosource, which tracks Multiple Listing Service statistics, also reported an annual increase in average days on the market from 51 to 71 in the Mid-Wilshire market, where the average price is now $409,810.

[LongBeachUrbanist]

Some of the more speculative, borderline-Skid-Row ventures (Santee Court, LT Lofts, Nabisco Lofts, Toy Factory Lofts, etc.) have always been concern to me, precisely because they are being sold for such high prices in areas that don't have a lot of immediate clean-up prospects.

And as LAB noted, if in fact Axis is suffering from fear of declining sales, it might think twice about asking as much as it is for its condos. I know it costs a lot to build these projects, but you can't ask half-a-million and up for your condos and expect interest to sustain forever. There are only so many people with that kind of income who are interested in being "urban pioneers".

This is what I've said over and over, the high-rise bubble model is not the best way to create a vibrant downtown. The area needs a sense of neighborhood first, with lots and lots of middle-class residents and amenities for living. Otherwise, people will see Downtown as a flash-in-the-pan and quickly lose interest when things turn sour. The city needs to take care of the homeless problem, the CRA needs to focus more on creating community rather than creating high-rises. We need the Ralphs' supermarket and new parks and a Downtown Connector. These should have been in place before the boom, not at the end of it.

Overall, I have confidence in Downtown because I think it has passed the true turning point. I think we have to expect some of the big projects to fail. That's how the real estate market works. But remember, already Downtown is much nicer than it was before, and it's reputation is much improved. From talking to lots of people, I would say the city as a whole is becoming more urban and urban-minded. Plus, LA Live, Grand Avenue, the Eastside and Expo lines, and several dozen other projects are highly likely to be completed in the next 3-4 years. These investments and projects will help cement DTLA as the undisputed urban center of L.A., and will fuel the next building boom.

[colemonkee]

A slowing of the market is expected, but a lot of the units in my building that have gone on the market in the last year or so have sold, so it's not dead yet. And that includes two penthouses, which sold recently.

On another, positive note, I drove by the Pan American Lofts (Irvine Bryne Bldg) today, and it looks like they're getting ready to install the windows - finally! They're not installed yet, but they brought them on site and have them standing by ready to go. The lobby and ground floor have a looooong way to go, though, before it can open.

[citywatch]

I think it's even harder to know what may happen over the next several months or yrs because a lot of info is private or confidential, or generally not tracked closely, even by those who should be on top of things. For instance, the DCBID's web site has a page that shows vacancy rates for most of the new apt bldgs in DT, but it's several months out of date. If you read it today & didn't realize that, you'd think demand for rentals in the hood was slumping.

I want to slot the following in here, because it describes 2 cities where devlprs have built way more condos & apts than what's found in DTLA. Even so, ppl there still have their fair share of nervousness, as well as contradictory predictions from experts.

I also read about what's going on elsewhere, in cities like Toronto & Miami, & think if they can build so much, why can't we? That's why I think there will be no excuse if devlprs in DTLA can't duplicate at least a fair portion of what devlprs have done elsewhere, even without this city having the large number of wealthy South American foreign buyers drawn to Miami or all the success driven ppl of Canada lured to Toronto.


Sky's the limit for condos?

When it comes to highrise living, T.O. is tops in North America — at least for now

May 25, 2006

TONY WONG
BUSINESS REPORTER

We have become a nation living in concrete boxes, thrust into the sky. More than 17,000 new condos sold in Greater Toronto last year — the most ever in the history of the area. And we don't take a back seat to any place else on the continent. In Miami, the number sits at 7,500, in Chicago, 6,800, and in New York, 6,450. More resale condos sold in the first quarter of this year than at any time in the past five years.

Toronto, says Jeanhy Shim, president of Urbanation, a market research firm that tracks the condominium business, is the largest market in North America. The pundits have declared it dead more than a few times over the years, but the condo market has chugged along, oblivious to the fact that it is defying the predictions of some of the best analysts in the business — many of whom still say a reckoning is yet to come. But, it seems, not yet. In the resale market, for the first time this year multiple offers have been a trend — a feeding frenzy that seemed largely restricted to houses in Forest Hill and single detached homes on leafy streets.

"That was a shocker," says Jamie Johnston, a ReMax realtor who specializes in condos. "It's the first time I've seen a pattern of multiple offers."

The good news for realtors is that Toronto is the hottest market in North America. The potentially bad news (if you're an investor) is that Toronto is the hottest market in North America.

"We know that everything that goes up must come down. When anything seems too unbelievable, it usually is," says economist Frank Clayton of housing research firm Clayton Research. "And the longer the sales go on and prices appreciate, the bigger the adjustment we're going to have."

The problem is, economists such as Clayton have been forecasting the slowdown of the market for a few years, but the opposite has happened. So are we in a new realm where condo sales will stay at lofty levels? Some realtors seem to think so. Last week, the Greater Toronto Home Builders' Association reported condos accounted for 44 per cent of all new sales in April, well above a historical 25 per cent average, as buyers shy away from detached and low-rise houses.

Ten years into a spectacular market, association president Desi Auciello couldn't sound more satisfied. "We believe the best may be yet to come," Auciello says, citing the recent GST cut as another boost. Realtors may be forgiven for thinking the market has entered a new paradigm — although the last time those words were uttered was in the days of the technology boom, before it imploded. While most economists don't think this will happen to the housing market, some think the condo market is particularly vulnerable to a correction.

There are already signs that developers may be hedging their bets. Several new projects in Toronto have been offering bonus commissions to agents. One luxury downtown project, for example, is offering agents a 5 per cent commission (instead of the standard 2.5 to 3 per cent) on every sale. Another project on the lakefront is offering agents a 4.5 per cent commission next week on any penthouse sale. If agents sell two or more suites, they can win $2,000 or a trip to California.

By the end of this year, housing economist Will Dunning estimates, 14,700 units will be completed and ready for occupancy. He expects more than 14,000 units to be completed in 2007. "We won't start seeing a lot of the effects until early 2007, but there will be a wave coming."

While it won't quite be the Poseidon Adventure, Dunning has repeatedly warned that he thinks there is a "high risk" that the market is overbuilt. One thing he and Clayton agree on is that there are a significant number of investors in the market, anywhere from 25 to 40 per cent. If the market softens, many will be placing their units back on the market.

"Things are totally out of whack; the numbers of condos being sold don't support demographics," Clayton says. Even if the conservative estimate of 25 per cent is applied, that means there will be at least 3,000-plus condo rentals coming on the market every year for the next several years. Those condos are expected to compete with apartments and other condos to drive rental prices down and vacancy rates up. When investors can't rent their units, they tend to unload them. At least that's the fear.

So far, of course, the much-anticipated correction hasn't materialized. And realtors such as Jamie Johnston, who think the market still has legs, have never looked more prescient. Still, Johnston, who is an economist by training with an MBA specializing in real estate, is the first to admit that not everything is perfect. For one thing, the spread between resale prices and new condo prices is growing.

The price difference historically between new and old condos has been about $50 per square foot. Developers are now asking about $100 per square foot more for new condos, Johnston says. "There are still some good new projects coming to market, but there are other projects that will not hold the pre-construction prices being offered today," he said in a recent report.

While he thinks the resale market will continue to be buoyant, Johnston says some of the new condo prices are a result of developers trying to make as much hay out of the market as possible. But if price gouging and speculators don't kill the market, there is one potentially big factor that might: high building costs.

The costs of building and developing properties, from land to labour, have skyrocketed. This could lead to a situation where projects are killed if the numbers don't add up, Shim says. A study by construction cost consultancy Altus Helyar says development costs in Toronto increased by 8 per cent last year and are expected to increase by 8 per cent again this year. If costs keep rising, Shim worries that Toronto could become another Miami, where projects have been shelved by developers who are worried that prices aren't sustainable. Still, Shim, along with realtors such as Johnston, think the market still has a ways to go. For one thing, if you want to live in affordable housing downtown, condos are it. Higher housing prices have shifted buyers into the condo market. Then there is another segment that is now actively choosing condominiums.

"It's not about living in condos because you can't afford a single detached home any more," Shim says. "More people want the convenience of living in a condominium and are willing to pay for it."

Unlike the bubbly 1980s, where condo prices crashed by 40 per cent, Shim says this time is different. Banks are more stringent, and developers typically have to pre-sell 60 to 70 per cent of their units before construction. The market continues to benefit from both the first-time buyer and the move-up buyer, and will continue to be fuelled by the baby boomer who is downsizing, Johnston argues.

Meanwhile, price increases have been relatively benign in the condo market in the past, mainly because of a highly competitive market. Since the first quarter of 2003, the price per square foot for condos has remained relatively flat at $301. In the first quarter of this year, prices rose to $324. Some investors believe the Toronto market has legs because it isn't Miami or New York, or even Vancouver, where prices have gone up considerably more, argues Israel Schwartz, who is considered one of the shrewdest wheelers and dealers in the market.

"There is no such thing as a first-time house buyer in the Toronto market any more," he says. "It's about being a first-time condo buyer, because most people
don't have a choice if they want to live downtown. That's what's fuelling this."

Toronto developers have managed to boost their bottom line by building smaller units, but at an affordable price level for entry-level buyers, says Schwartz, who sees shrunken condos as an inevitability. "Ten years ago, you paid $250,000 for a 900-square-foot place, and now you're getting 600 square feet for the same price," he says. "But at least you're getting your foot in the door."




The boom is over, but don't expect big drops in real estate prices, Realtors say

By Doreen Hemlock
South Florida Sun-Sentinel
June 14 2006

South Florida's real estate boom is over. Housing sales are down. But don't look for prices to drop much -- if at all -- partly because of demand from overseas buyers, the chief economist of the National Association of Realtors said Tuesday in Coral Gables. Florida has the highest share of real estate buyers from overseas of any state, 15 percent on average. Miami-Dade and Broward counties combined rely even more on foreign buyers, 30 percent, according to a Realtors association study tracking home sales in the 12 months ended May last year.

Those foreign buyers will keep propping up South Florida's real estate market, lured by the U.S. import-export explosion, the high value of the euro compared with the dollar and the safety of U.S. investments amid turmoil in Latin America, Realtors group economist David Lereah and others said at the 2006 International Real Estate Congress and Expo at The Biltmore Hotel. With foreigners still buying, Baby Boomers starting to retire and warm weather a steady lure for northerners, "Florida will remain America's No. 1 destination for the next 10 years, at least," Lereah said during the opening day of the three-day event expected to draw 500-plus people from Latin America, Europe and beyond.

The weight of international buyers was clear Tuesday at the expo, where exhibitors offered sales materials in Spanish and other languages. Executives from the Timcor Exchange Corp. office in Weston handed out brochures detailing how overseas investors can legally defer taxes on U.S. property sales.

Developers of the luxury W Fort Lauderdale Hotel and Residences also sought out brokers catering to European and Latin American buyers. Foreigners likely will buy 20 percent of the resort's 171 residences, each priced from about $1 million to $2 million, said Maura Launders, sales director for Fort Lauderdale's Colonial Realty.

Still, risks remain for South Florida real estate, especially "hurricanes and the availability of insurance," Lereah said.

So far, only a tiny share of buyers, less than 1 percent, are forgoing Florida because of hurricane woes, many opting for mountainous areas from Georgia to Tennessee, said Lereah. But that share could rise "until they solve the insurance problem," he said, urging government to structure subsidies for disaster insurance.

The future of U.S. interest rates matter, too. Lereah said the U.S. real estate boom ended last August, when a mix of rising interest rates and soaring home prices led many speculators to realize they could no longer flip properties easily for high profits. As investors stopped buying, demand and prices cooled in many markets.

Now, those U.S. locales that posted soaring prices for years, including Miami, Fort Lauderdale and West Palm Beach, find it takes many more months for homes to sell and at prices rising at a slower pace. Sales are down as much as 30 percent in some areas, such as Miami's overbuilt condo market.

"We are transitioning from a seller's market to a buyer's market," Lereah said. Over the next six months, Lereah said, U.S. prices will either fall or rise more slowly until sales picks up again likely next year. But higher interest rates could pinch. Lereah calls raising rates "a mistake right now."

Many recent buyers, especially in extra-pricey California, financed properties with interest-only loans at adjustable rates. Some buyers could lose their homes, if rates go up even half a percentage point over the next year, he warned.

Exhibitors were mainly upbeat, however, that South Florida's market will rebound next year as Baby Boomers, retirees and foreign buyers keep moving in. "We're in the state of Florida," said Suzanne Parlick, sales director for Boca Raton-based EB Developers. "Everyone wants to come to Florida."

[ggmike]

Downtown: Not sure how much stock to put in this, but a little birdy tells us MJW Investments is apparently having some difficulty selling units in Santee Court, as in "they can't sell any units at santee court to save their lives..." They've also just put out an RFQ for the Sears building in Boyle Heights.
[/i]


Not sure who that birdy was, but I just moved into Santee Court and I noticed others moving in too, suggesting that sales can't be going all that bad... From what I've been told, close to 75% of the units have been sold. I think they're just comparing it to the Southgroup developments which have sold out pretty much immediately thus it looks slow, but I'd think it's going pretty well...

Does anyone have some stats on how each of the projects so far are doing in sales? It'd be interesting to see if there's any trends and to see what areas are doing best. It seems like so far SouthPark is in really high demand compared to other Downtown neighborhoods...

[citywatch]

From what I've been told, close to 75% of the units have been sold. I think they're just comparing it to the Southgroup developments which have sold out pretty much immediately thus it looks slow, but I'd think it's going pretty well...
Now THAT is the sort of feedback I like hearing about. I'm hoping that little "birdy" actually is a disgruntled former resident or employee who wanted to stir things up for his ex landlord or boss.

There still are soooo many additional bldgs & sites in the hood that have to be cleaned & fixed up, that any slowdown at this early stage is not acceptable.

[bobcat]

I actually think this housing cycle is slowly coming to an end, but that as we get closer to the opening of LA Live and Grand Ave we will see an increase in activity for the hospitality and retail sectors. AEG already announced plans for the 2nd LA Live hotel, and I would guess there will be more hotel/retail proposals for the sites in the immediate vicinity.

[ggmike]

Here's what I've heard so far from buildings that I checked out while shopping:

El Dorado Lofts - a lot have been pre-sold to friends and family already but not yet available to the public.

Shy Barry Lofts - I think last time I checked it was around 50% or a little over, but they had a lot of units and a really bad reputation, and that was a while ago...

Pan American Lofts - Mostly sold out? At least the cheaper units were definately sold out...


Also - we have to keep in mind that there are buildings like Eastern Columbia which are mostly sold out and that aren't even finished yet. Once all of the buildings that are in construction are done, we are going to have a huge influx of new residents, people who will be walking around the streets. This will totally change the dynamic of how it feels to walk around downtown and lead to a snowball as the area gets better and demand rises. I think a lot of people are "on the fence" waiting to see what happens before jumping in.

Does anyone know how many units in the area are sold vs. moved in? It seems to me like alot of stuff is sold, but alot of the stuff that's sold isn't even ready for move-ins or people have bought but not moved in yet. I can't wait until people are actually moved in and living in downtown!

[colemonkee]

Pan American Lofts - Mostly sold out? At least the cheaper units were definately sold out...

Also - we have to keep in mind that there are buildings like Eastern Columbia which are mostly sold out and that aren't even finished yet. Once all of the buildings that are in construction are done, we are going to have a huge influx of new residents, people who will be walking around the streets. This will totally change the dynamic of how it feels to walk around downtown and lead to a snowball as the area gets better and demand rises. I think a lot of people are "on the fence" waiting to see what happens before jumping in.
According to an ad in this week's DT News, there are 8 units left in the Pan American Lofts (and that's the first ad I've seen, so it must be getting close).

As for pending move-ins, the buildings that will have the most effect by the end of the year will be Sky Lofts, Eastern Columbian, Packard Lofts and Reserve Lofts (as they lease out slowly but surely), 1100 Wilshire, Library Court and hopefully Pan American, Arcade, Brockman, and Mandel, if they get on their collective horses. Savoy and Hikari will make a serious dent in the Little Tokyo scene as well. That's quite a few units, but they're spread out over all areas of downtown, so their "street life" effect will be diluted a tiny bit.

The [I]real[I] change will be early-to-mid 2007 when Luma, Market Lofts, LA Live phase 1, 1010 Wilshire, 4th and Broadway (forget the name), El Dorado (scheduled for December, but c'mon, nothing finishes on time), Rowan Lofts (ditto), Barry Shy's project on 6th and Spring and a few more, come online. They'll be adding more units to a further established base.

I've been here almost a year (in July), and even without any openings in my area other than the Douglas Bldg, I've noticed a significant difference in the street life. It's no New York yet (and won't be for years), but progress is being made, and should continue, even as the market slows down.

[RAlossi]

i keep forgetting to ask... what's going on northwest of the 101/110 freeway interchange? There's a fairly large project there. is that a GH Palmer development or something else? I pass by it every day on my way to work, and it's very visible from the freeway.

[colemonkee]

^ If it's the big hole in the ground, that should be the Orsini II, a GH Palmer development.

[MapGoulet]

A slowing of the market is expected, but a lot of the units in my building that have gone on the market in the last year or so have sold, so it's not dead yet. And that includes two penthouses, which sold recently.

On another, positive note, I drove by the Pan American Lofts (Irvine Bryne Bldg) today, and it looks like they're getting ready to install the windows - finally! They're not installed yet, but they brought them on site and have them standing by ready to go. The lobby and ground floor have a looooong way to go, though, before it can open.


Yo Yo Yo, Mad props to mah homies -- Urban Pacific Builders, dawg. Dows catz are new on da block, but they kno their shit, fo show!

(I'm working way too late these days)

[RAlossi]

^ If it's the big hole in the ground, that should be the Orsini II, a GH Palmer development.


I don't think it's Orsini as it's on the other side of the freeway (Orsini I/II are on the northeast side, I believe?). This is on the northwest side.

[BrighamYen]

Yo Yo Yo, Mad props to mah homies -- Urban Pacific Builders, dawg. Dows catz are new on da block, but they kno their shit, fo show!

(I'm working way too late these days)


I know! You've been M----I-----A! :haha:

[deehrler]

i keep forgetting to ask... what's going on northwest of the 101/110 freeway interchange? There's a fairly large project there. is that a GH Palmer development or something else? I pass by it every day on my way to work, and it's very visible from the freeway.

Probably the Broadstone.

[colemonkee]

I don't think it's Orsini as it's on the other side of the freeway (Orsini I/II are on the northeast side, I believe?). This is on the northwest side.

Ah! Northwest side. I need to stop logging late as well...

[Steve2726]

I just found these renders of Fig Central, although the status of this project is up in the air at the moment. I need Colemonkee to post these flash renders for me...:cheers:

http://www.gruenassociates.com/arch_figueroa_central.html

[DJM19]

wow, I wish the renderings were bigger though

[BrighamYen]

It looks horrible. I hope that rendering is old. It's like significantly worse than the old rendering from LNR. :(

[DJM19]

it looks really...basic...and bland

[colemonkee]

I'll post this here and in the DT Rundown thread, where it really belongs...

"Updated" Metropolis Renders

The renders are pretty small, and zooming in on them didn't do any good, so I'm posting them at original size. Let's start with the site plan:

http://img485.imageshack.us/img485/9089/metropolis20ak.jpg

A rendering of what looks like phases 1 and 2, according to the above site plan. Looks like the previous designs we have seen:

http://img412.imageshack.us/img412/5915/metropolis11ra.jpg

And a rendering of all four phases.

http://img68.imageshack.us/img68/3876/metropolis39pc.jpg

Note that the tallest office tower (closest to the freeway, appears to be shorter than TCW Tower (at 517 ft). But TCW is only 39 floors of office, while this one will be 45. I wonder if that has to do with the first six floors being parking. Even so, this tower should still be taller than TCW by about 45 feet. Perhaps these renderings are off? But they must be recent - check out the massing of the Convention Center hotel, it reflects very recently announced redesigns.

A microscopic stacking plan. Sorry, that's how small it is on the site:

http://img310.imageshack.us/img310/4240/metropolis53xx.jpg

Finally, a ground floor plan, with a decent retail plan. They can't have retail along 9th street, because that's a freeway offramp that's well above grade. So at least they've positioned the majority of the retail on the street.

http://img412.imageshack.us/img412/5836/metropolis49ic.jpg

[ferneynism2]

Downtown Today!!!!:cool:

http://i38.photobucket.com/albums/e124/fnee1901/DSCN0462.jpg

http://i38.photobucket.com/albums/e124/fnee1901/08790422.jpg

http://i38.photobucket.com/albums/e124/fnee1901/f77c5255.jpg

http://i38.photobucket.com/albums/e124/fnee1901/DSCN0459.jpg

http://i38.photobucket.com/albums/e124/fnee1901/809cd753.jpg

http://i38.photobucket.com/albums/e124/fnee1901/e7bd97db.jpg

http://i38.photobucket.com/albums/e124/fnee1901/38a2b8d5.jpg

http://i38.photobucket.com/albums/e124/fnee1901/84d97922.jpg

http://i38.photobucket.com/albums/e124/fnee1901/4c8553f2.jpg

http://i38.photobucket.com/albums/e124/fnee1901/9080df84.jpg

http://i38.photobucket.com/albums/e124/fnee1901/2eef6639.jpg

http://i38.photobucket.com/albums/e124/fnee1901/c8279d21.jpg

[colemonkee]

Great shots, ferney. Great shots.

[citywatch]

Note that the tallest office tower (closest to the freeway, appears to be shorter than TCW Tower (at 517 ft). But TCW is only 39 floors of office, while this one will be 45. I wonder if that has to do with the first six floors being parking. Even so, this tower should still be taller than TCW by about 45 feet. Perhaps these renderings are off? But they must be recent - check out the massing of the Convention Center hotel, it reflects very recently announced redesigns.

The proposed 45 story bldg likely will have shorter floor to ceiling heights typical of most residential or hotel type structures. Therefore, it prob will be shorter than the nearby commercial/business TCW tower.