LOS ANGELES | Downtown Project Rundown 3.0

[LosAngelesBeauty]

Originally Posted by ksep

i just drove by the l.a. central site. much of the fence is STILL INTACT. yes some of the fence was taken down, mainly along 11th street. i am still hopeful. maybe it just got delayed a bit, like usual, and they want to continue using it for parking until they really can start digging.

a south park resident left this comment on curbed l.a.:

I live within a 500-Foot Radius of the L.A. Central site, and recieved a Notice of Public Hearing yesterday, by applicant Fig Central LLC to be held on 05Dec2007, requesting multiple variances in accordence with the Los Angeles Sport and Entertainment District Zone (LASED). Proposing: A, 52 story north tower which will include a 222-room hotel and 412 condo units. A, 40 story south tower wich will contain retail uses and addiontal condo units. A, 100 ft above ground podium containing parking, retail, restaurant uses, a sports bar and a 43,000 sq ft health club. The site will also be home to a 54,000 sq ft food market and app 1900+ parking spaces.

Let's cross our fingers.

[JDRCRASH]

This doesn't make any sense; some of these projects have been approved or are under construction; so how is it possible that they could get back out this late?

[Easy]

Originally Posted by LAofAnaheim

^ It's like you're saying, well if 717 Flower halts construction, then Concerto will follow. Don't mix the two projects. They're mutually exclusive. We still have 717 Flower, Concerto, Evo, and Medallion under construction. And a ton of conversions still happening (Brockman, Roosevelt, 655 Hope, 1010 Wilshire, Grand Republic Lofts, the Chapman, Union Lofts, etc...).

That's not what he's saying at all.

[DowntownCharlieBrown]

Originally Posted by Easy

That's not what he's saying at all.

If he knows they are two different projects, it sounds like that is what he is asking.

But for a little more clarification: the 54-storey hotel at LA live has already dug a hole, poured concrete, and is under construction.

LA Central had/has a fence around the property, but never broke ground, and therefore is not under construction.

If a developer decides to cancel the project, it is almost always done before groundbreaking. Once concrete is poured and the building is going vertical (which may be where the hotel is now, webcam has been down since Oct 26th), canceling the project is much more difficult, because the developer will still have to deal with the partial construction mess that has been made. I have seen unfinished skeletons of mid-rises of casinos gone bankrupt, but never in a downtown situation.

There may be more to this that someone else can elaborate?

[LAmarODom420]

So, what's up in downtown L.A.?



An Oregon partnership defies the real estate downturn by building new, environmentally friendly condominium towers in the area.


By Roger Vincent, Los Angeles Times Staff Writer
November 13, 2007

Undaunted by recent discouraging news in the California housing market, condominium developer South Group is finishing up its third high-rise building in downtown Los Angeles and planning two more.

The Portland, Ore.-based builder is the largest developer of new residential buildings downtown and it is gambling $750 million that demand for housing in condo towers in urban neighborhoods is still strong and that today's dip in the market will be brief.

By South Group's reckoning, the current building boom -- the largest in decades -- transforming many Los Angeles County neighborhoods with billions of dollars' worth of new residential and commercial development is unstoppable as long as the region's economic engine keeps growing.

"L.A's physical form does not match its economy," said Tom Cody, a South Group principal who described much of the local terrain as "a sea of mediocrity."

Angelenos are hungry for a more pleasing street scape and developers who help provide it will prosper as the city's trend of growing-in instead of just out picks up speed, he said, and downtown will continue to get a big share of the action.

Maintaining sunny optimism about one's prospects is a basic requirement for real estate developers, but so far South Group's perception about what the market wants has proven correct.

Following a model of environmentally friendly high-rise design it perfected in Portland, South Group has sold more than 470 units in downtown Los Angeles at prices ranging from the mid-$300,000s to $2.4 million. It was the first company in more than two decades to go beyond converting older buildings to trendy lofts and began building brand-new, high-rise condos.

Even in a neighborhood where the skyline changes almost every other month, South Group's work stands out. Their three buildings called Elleven, Luma and Evo fill almost an entire block at 11th Street and Grand Avenue, where a new urban neighborhood with shops, housing and a park is emerging.

Last month, South Group was recognized by the U.S. Green Building Council for building the first California condominium project to receive a "gold" rating for its environmental standards..........

.....



The region's cooling residential real estate market pushed downtown condo prices a bit lower in the third quarter but there were still many sales, said real estate broker Mark Tarczynski of CB Richard Ellis.

Sales may drop quite a bit this fourth quarter, in part because uncertainty related to the credit crunch has sidelined buyers as they wait to see what happens to the market, he predicted. "This is a speed bump we'll get past. We are at a very weird time."

Tighter credit has made it harder for South Group's condo buyers, especially those who are self-employed, South Group's Atkins acknowledged. "This is a cyclical business, and we are in the downside of the cycle. But this isn't like 1991" when the Los Angeles economy began contracting and home values fell, he said.

City leaders also need to do more to reduce the number of homeless people on downtown streets, Atkins said.

The company still plans to break ground next year on two more condo buildings downtown, bringing South Group's total spending on downtown construction to $750 million.

"Smart, urban, high-rise housing has very little competition," Cody said. "The need has been unmet for so long."


http://www.latimes.com/business/la-fi-south13nov13,1,6680033.story?coll=la-headlines-business

[DTLA]

^Thanks for that article, LAmarODom420 that definitely is good news for Downtown LA


Easy, DT Charlie Brown, it was interesting hearing you debate about what I was saying, but I figure it would be best for me to elaborate.

1. I know LA Central and the Ritz/Marriot are entirely different projects

2. I know that the Ritz/Marriot has started construction where as LA Central has not.

3. My question was involving if it was still profitable enough to finish building the Ritz/Marriot, because I wasn't sure if it would be scrapped due to the current declining market.

4. The reason I was wondering if the project was going to be cancelled was because of the talk of the possible cancellations of many of the other projects

5. Even though the projects that have been talked about being cancelled have not yet started construction, I was not sure if that could effect the projects like the Ritz or Concerto which have just barely started construction.

6. DT Charlie Brown, you were able to answer the question I was asking. What I wanted to know was if it would cost more to stop the project, or to keep building it. Because the hotel has not gotten very long in construction, I didn't know if it had the same chance as 717 Flower, which is well into construction, to be completed. Thank you for clarifying that it would be unlikely for the project to stop due to the price of fixing the "partial construcion mess" even if not much of the building has been completed yet.

[bobcat]

The decline in the housing market should have a negligible effect on hotels. If anything I expect more hotel projects to be announced.

[funhaus]

^ and while LA Central will rely on the condos planned within in order for the project to pencil out, there are other aspects to its program that suggest it could still be viable. The boutique hotel portion of it specifically, as well as the retail component.

So fingers crossed that construction fence will come back sooner than later...

[ladowntowner]

Originally Posted by BigDan35

So what's going on with the LA Live Hotel? This is the biggest thing going up in LA right now, by far, and I haven't seen any sort of an update in weeks.

I saw a significant concrete pour into the pit going on Sat. morning in passing. Much of Olympic was closed in the vicinity.

[bobcat]

I don't think the small hotel and retail space will make much difference. They may need to change it to a predominantly hotel project.

[citywatch]

Originally Posted by DTLA

3. My question was involving if it was still profitable enough to finish building the Ritz/Marriot, because I wasn't sure if it would be scrapped due to the current declining market.

Don't even wonder about that! It's almost like putting a jinx on the proj.

We're still guessing about & waiting for final word on proposed devlpts that haven't even broken ground yet, esp the Parkfifth tower &, of course, LA Central. I'm assuming that start of work on the Grand Ave proj by Dec 1st is a given.

No one has described in detail what portion, & how much, of LA central's barrier was removed----other than it's on the 11st St side of the site. And no one has been able to say precisely what it all means. Was part of the wall removed to open up more driveway space for cars? Was it to open up the sidewalk to pedestrians? I sure hope it isn't cuz the proj is being formally delayed or, worse, cancelled. And I sure hope removal of any section of the wall was complete as of yesterday. IOW, I'm guessing no more of it was taken down today.

[citywatch]

Originally Posted by DowntownCharlieBrown

I have seen unfinished skeletons of mid-rises of casinos gone bankrupt, but never in a downtown situation.

You may not be old enough to recall a highrise condo tower on Wilshire in westwood that sat uncompleted for several yrs. The devlpr started construction on it during the early 1990s & went as far as something like the 8th floor, then totally stopped work on it. It became a rusting eyesore that symbolized just how bad the economy became during the time of the recession following the downturn of the local defense industry, the LA riots & Northridge earthquake.

More recently, there was news a few days ago that the devlpr of the few highrise condo towers in OC is halting sales on even units near completion, & certainly delaying start of work on additional housing, highrise or otherwise.

[DTLA]

^That story about the Irvine high rise was what had me wondering about the completion of the Ritz/Marriot, especially since it's still in its beginnings in terms of actual construction. But, after reading LAmarODom420's article and hearing about the concrete pour on Saturday it seems like the project is going forward

[ladowntowner]

Originally Posted by citywatch

[/b]You may not be old enough to recall a highrise condo tower on Wilshire in westwood that sat uncompleted for several yrs. The devlpr started construction on it during the early 1990s & went as far as something like the 8th floor, then totally stopped work on it. It became a rusting eyesore that symbolized just how bad the economy became during the time of the recession following the downturn of the local defense industry, the LA riots & Northridge earthquake.

More recently, there was news a few days ago that the devlpr of the few highrise condo towers in OC is halting sales on even units near completion, & certainly delaying start of work on additional housing, highrise or otherwise.

I remember that highrise condo tower. It came to my mind also when people here started tossing around the possibility of such a scenario. I think it was called the Evian or some such thing.

[LAofAnaheim]

Walking home pretty buzzed on Friday night/Saturday morning, I ran into 2 construction guys who asked me where food was at 3 am. I pointed them to IHOP; and then I asked where they were working. And they said, "concrete pour at LA Live!". So, I can vouch ladowntowner's statement.

Also, I drove by the LA Central site. The only difference, is the 11th street side fence has been removed. Everything else is still intact. Probably removed to welcome cars into parking at LA Central until construction begins.

[JDRCRASH]

Originally Posted by LAmarODom420

So, what's up in downtown L.A.?



An Oregon partnership defies the real estate downturn by building new, environmentally friendly condominium towers in the area.


By Roger Vincent, Los Angeles Times Staff Writer
November 13, 2007

Undaunted by recent discouraging news in the California housing market, condominium developer South Group is finishing up its third high-rise building in downtown Los Angeles and planning two more.

The Portland, Ore.-based builder is the largest developer of new residential buildings downtown and it is gambling $750 million that demand for housing in condo towers in urban neighborhoods is still strong and that today's dip in the market will be brief.

By South Group's reckoning, the current building boom -- the largest in decades -- transforming many Los Angeles County neighborhoods with billions of dollars' worth of new residential and commercial development is unstoppable as long as the region's economic engine keeps growing.

"L.A's physical form does not match its economy," said Tom Cody, a South Group principal who described much of the local terrain as "a sea of mediocrity."

Angelenos are hungry for a more pleasing street scape and developers who help provide it will prosper as the city's trend of growing-in instead of just out picks up speed, he said, and downtown will continue to get a big share of the action.

Maintaining sunny optimism about one's prospects is a basic requirement for real estate developers, but so far South Group's perception about what the market wants has proven correct.

Following a model of environmentally friendly high-rise design it perfected in Portland, South Group has sold more than 470 units in downtown Los Angeles at prices ranging from the mid-$300,000s to $2.4 million. It was the first company in more than two decades to go beyond converting older buildings to trendy lofts and began building brand-new, high-rise condos.

Even in a neighborhood where the skyline changes almost every other month, South Group's work stands out. Their three buildings called Elleven, Luma and Evo fill almost an entire block at 11th Street and Grand Avenue, where a new urban neighborhood with shops, housing and a park is emerging.

Last month, South Group was recognized by the U.S. Green Building Council for building the first California condominium project to receive a "gold" rating for its environmental standards..........

.....



The region's cooling residential real estate market pushed downtown condo prices a bit lower in the third quarter but there were still many sales, said real estate broker Mark Tarczynski of CB Richard Ellis.

Sales may drop quite a bit this fourth quarter, in part because uncertainty related to the credit crunch has sidelined buyers as they wait to see what happens to the market, he predicted. "This is a speed bump we'll get past. We are at a very weird time."

Tighter credit has made it harder for South Group's condo buyers, especially those who are self-employed, South Group's Atkins acknowledged. "This is a cyclical business, and we are in the downside of the cycle. But this isn't like 1991" when the Los Angeles economy began contracting and home values fell, he said.

City leaders also need to do more to reduce the number of homeless people on downtown streets, Atkins said.

The company still plans to break ground next year on two more condo buildings downtown, bringing South Group's total spending on downtown construction to $750 million.

"Smart, urban, high-rise housing has very little competition," Cody said. "The need has been unmet for so long."


http://www.latimes.com/business/la-fi-south13nov13,1,6680033.story?coll=la-headlines-business

Finally!!!!!
A developer that actually has "sunny optimism" on the economic outlook of Downtown.
Tom Cody, you have become my best friend!

[LosAngelesBeauty]

Originally Posted by LAmarODom420

By South Group's reckoning, the current building boom -- the largest in decades -- transforming many Los Angeles County neighborhoods with billions of dollars' worth of new residential and commercial development is unstoppable as long as the region's economic engine keeps growing.

The economic engine is tied directly into cheap energy costs. The world has pretty much already peaked in global oil production. As demand from China continues to strain the supply, price for oil will continue to rise (well past $100 a barrel), which will stop the "unstoppable" economic engine and force it to shrink. That means eventually not too far off into the future (maybe by the end of 2008), most large scale housing projects will be canceled and many that were already under construction could come to a halt.

Let's hope that Saudi Arabia keeps pumping out those 10 million barrels of oil every day and that Canada can continue to pump out natural gas to keep both its economy afloat as well as the United States. Because if Canada were to slip, we would lose our number one oil supply (even ahead of Saudi Arabia). I can't help but mention that the giant oil field Cantarell in Mexico has already been in steady decline (10-14% decline annually). Not to mention Nigeria's social unrest which could cut off supply as well. Basically my friends, we are in a very, very precarious situation and less than 1% of the United States knows exactly how dangerous that is. It's a lot more to worry about than just if LA Central is going to be built, unfortunately.

[mello]

^^^ Man you are so right!! Finally someone who understands what the fuck is going on here. This whole facade is going to be exposed. The US economy has been patched together with super glue by our buddy Alan Greenspan.

He didn't want a recession on his watch so he slashed interest rates after the dot com bubble burst and created this "real estate boom" to prop up the economy for another 4 years.

Well guess what that is now completely DONE. It is time to pay the piper America. This economy is a fraud, and all held together by cheap oil just like LA Beauty is preaching.

I'm sorry LA fans but just be happy with what you have gotten out of your mini boom because it is all you will get.

[BrandonJXN]

Anyway...a theory I had about the LA Central site: The American Music Awards are this Sunday at Nokia. I also think something is happeing at Staples. Mabye a portion of the fence came down to open up more parking.

[LAofAnaheim]

LAB, I totally respect your views; however, it's not like 1 project being cancelled (or is it even cancelled?) will kill the 'LA boom'. Remeber when Concerto stopped for 8 months and then re-started; who's to say the same thing isn't happening for LA Central? Until we get official word from LA Central partners/developers, everything is heresay.

Yes, oil will become a huge problem for building materials, however, it will create a HUGE demand for people to move in-land, thus mid/high rise development will become the preferred method. Maybe instead of steel bldgs, we'll get more wooden bldgs. High price of oil will have a direct effect on where people chose to live. If demand skyrockets for urban housing, don't you think developers/politicians will start pushing for urban housing? It's not like LA or any other city can stop development.