LOS ANGELES | Downtown Project Rundown 3.0 - Page 220

k3d · #**4381** Posted **Apr 11, 2008, 4:59 AM**

717 Olympic

Ritz-Carlton Sales Center

milquetoast · #**4382** Posted **Apr 11, 2008, 8:09 AM**

Last updated: April 9, 2008 10:18am
L.A. Live Developer: Time To be Bullish
By Don Jergler

Leiweke
(Don Jergler is editor of Real Estate Southern California.)
LOS ANGELES-L.A. Live developer Tim Leiweke on Tuesday railed against the idea that now is a bad time to invest in commercial real estate. Leiweke, president and CEO of Anschutz Entertainment Group, made his comments at the Southern California Investor Symposium hosted by Marcus & Millichap Real Estate Investment Services at the Beverly Hills Hotel.

Leiweke said that now is the time to be aggressive with commercial and residential development. “This is the best time to be thinking two or three years ahead of the curve,” he said.
It's a recurring theme for the developer, whose $2.5-billion L.A. Live mixed-use complex near the AEG-owned Staples Center is expected to contribute to Downtown Los Angeles’ revitalization and highlight its status as an entertainment hub. In fact, Leiweke gave a similar speech two years ago in Downtown Long Beach encouraging development there and citing L.A. Live as the centerpiece of the Downtown L.A. renaissance. For the record, AEG also developed the Nokia Theatre, which will host the Emmys and the "American Idol" finale. L.A. Live is set to include a 1,000-plus room JW Marriott and a 123-room Ritz-Carlton hotel, luxury condos, several restaurants and clubs and possibly more hotels. Completion is set for 2010.
Leiweke noted that sales of the two hotel projects, office space and residential are going strong, and there are thousands of bookings several years out. As for the residential portion, “Two-thirds of the 224 condos have been sold,” he said.

Contrary to home prices nationwide and in the Southern California region, prices for condos in the project have not fallen, Leiweke said. “When we started they were selling at $880 per sf and now they’re at around $1,200 per sf," he explained. "We’re not going backwards.”

globest.com

milquetoast · #**4383** Posted **Apr 11, 2008, 8:11 AM**

Think about it. He says we've got to be thinking 2 or 3 years ahead of the curve- when the market has long bottomed out and the comeback is afoot. That means action NOW

colemonkee · #**4384** Posted **Apr 11, 2008, 2:12 PM**

^ Another thing to think about: the Ritz Carlton is only 123 rooms. There were some comments earlier that shed some doubt on whether downtown could handle three high-end hotels. If the Ritz is only 123 rooms, I don't think it's too far fetched to think that South Park could handle a St. Regis or Shangri-La. Not that I think the St. Regis project is moving forward anytime soon, but I do think that demand for high-end rooms in two or three years time could support it.

BrandonJXN · #**4385** Posted **Apr 11, 2008, 2:38 PM**

Quote:

Originally Posted by colemonkee

^ Another thing to think about: the Ritz Carlton is only 123 rooms. There were some comments earlier that shed some doubt on whether downtown could handle three high-end hotels. If the Ritz is only 123 rooms, I don't think it's too far fetched to think that South Park could handle a St. Regis or Shangri-La. Not that I think the St. Regis project is moving forward anytime soon, but I do think that demand for high-end rooms in two or three years time could support it.

I agree. People have this weird notion that the downtown market is fragile (which is sorta true) but what should be made clear that unlike other US cities that are overbuilding (see San Diego and Miami), DTLA is moving along slowly but smartly. Sure we would love to see our skyline grow in size but in terms of development, downtown should do it in a smart way. Ultimately, by the end of the year, I perdict that LA Central, Park Fifth, Grand Ave, Ihope, Residences @ Bixel and 1027 Wilshire will all be under construction. If 2 or 3 of those start construction this year then that will be another banner year for DT development.

JDRCRASH · #**4386** Posted **Apr 11, 2008, 2:44 PM**

Quote:

Originally Posted by milquetoast

Think about it. He says we've got to be thinking 2 or 3 years ahead of the curve- when the market has long bottomed out and the comeback is afoot. That means action NOW

Sounds good to me!

JDRCRASH · #**4387** Posted **Apr 11, 2008, 2:49 PM**

Quote:

Originally Posted by ThreeHundred

I agree. People have this weird notion that the downtown market is fragile (which is sorta true) but what should be made clear that unlike other US cities that are overbuilding (see San Diego and Miami), DTLA is moving along slowly but smartly. Sure we would love to see our skyline grow in size but in terms of development, downtown should do it in a smart way. Ultimately, by the end of the year, I perdict that LA Central, Park Fifth, Grand Ave, Ihope, Residences @ Bixel and 1027 Wilshire will all be under construction. If 2 or 3 of those start construction this year then that will be another banner year for DT development.

I wouldn't consider San Diego overbuilt.

I mean, look at Miami and Las Vegas; they're neck and neck with prices down almost 20%!!!!!

I don't think LA Central will break ground before Park Fifth.

But nonetheless, i hope your "prediction" comes true!

BrandonJXN · #**4388** Posted **Apr 11, 2008, 2:58 PM**

Quote:

Originally Posted by JDRCRASH

I don't think LA Central will break ground before Park Fifth.

It's not so much who builds what first. I feel that LA Central, Grand Ave, and Park Fifth are the Big 3. Those 3 projects have strong chances of being built and those 3 are very important in terms of the growth of downtown LA. Both in the scale of the projects and the importance they will have in the 'growth' of downtown. And seeing as how on average a 40 + story building takes roughly 2 and a half years to construct, the housing slump should long be over with and the units will be sold at a brisk pace.

yeah215 · #**4389** Posted **Apr 11, 2008, 3:22 PM**

Wasn't Park 5th also supposed to include 5-star hotel? Are they any rumors about which one that would be?

JDRCRASH · #**4390** Posted **Apr 11, 2008, 4:56 PM**

Quote:

Originally Posted by ThreeHundred

It's not so much who builds what first. I feel that LA Central, Grand Ave, and Park Fifth are the Big 3. Those 3 projects have strong chances of being built and those 3 are very important in terms of the growth of downtown LA. Both in the scale of the projects and the importance they will have in the 'growth' of downtown. And seeing as how on average a 40 + story building takes roughly 2 and a half years to construct, the housing slump should long be over with and the units will be sold at a brisk pace.

Yeah, that makes sense. The magnitude of these projects are enough to totally transform Downtown. And I know certain people on this site may murder me for this optimistic, but: I think the downturn in the economy will not last as long as most Americans expect it to.

I know it's not in DTLA, but one project I would like to see accomplished is the $3 Billion Universal City Expansion that will include a New York-like HQ for KNBC 4-TV.

DJM19 · #**4391** Posted **Apr 11, 2008, 5:21 PM**

I anticipate that project as well.

BrandonJXN · #**4392** Posted **Apr 11, 2008, 5:30 PM**

Surprised no one posted this yet:

AON Readies an Updated Street Presence
By Eric Richardson

The AON Center at 707 Wilshire recently started work on a ground floor renovation that looks to make the building more friendly to pedestrian life. Since the construction scaffolding went up several weeks ago crews have been hard at work removing old hardscape elements that separated the building from the sidewalks.

Renderings placed on the construction wall show a new 6th street approach that opens the building up to the street and a bright interior color scheme that highlights the building's distinctive crossing escalators. Renders also show a "Garden Cafe" on the plaza outside the building.

707 Wilshire opened in 1973 as the tallest office structure in the West. The 62-story structure was built for the United California Bank.

A 1974 Times article touted the building's ability to "smell" fire, highlighting the hundreds of sensors in lobby areas and air conditioning ducts. All were connected to a central computer system in the building's basement.

What it did not have were sprinklers.

In May of 1988 a fire broke out in the building that required 40% of the City's firefighters to put out. One person was killed and 40 were injured. The Times noted that the building had been installing sprinklers at the time, and had gotten work 90% completed, but that they were not yet operational.

As befitting a building that used to be Los Angeles' tallest, 707 Wilshire has some interesting stories.

In 1976 a gunman -- who was later found to have just a starter pistol -- took chief building engineer Martin Hickey as a hostage and led him to the roof. He demanded that a written statement on the dangers of smoking be read on local radio. When it was he surrendered to the police. The gunman, Dolphin Lair, told KFWB in a jail interview that he had tried to get the word out about smoking after his father's death. The Times recounts: "They told me it wasn't newsworthy," he said, "So I planned this... and it was newsworthy."

In 1982 Ron Broyles, an out of work stunt man, climbed the outside of 707 Wilshire. The Times writes that "He was trying to attract attention to himself to get work. As he climbed, a friend on the ground was available for press queries." Broyles made it all the way up the outside of the building with his clamps and rappelling gear, and then was arrested when he reached the roofblogdowntown

BrandonJXN · #**4393** Posted **Apr 11, 2008, 5:34 PM**

Dolphin Lair is offically the coolest name ever.

But back to AON: I wish they would also do something to the Grand Ave side. That 5 foot high concrete wall needs to come down.

JDRCRASH · #**4394** Posted **Apr 11, 2008, 6:06 PM**

Had our brave city Firefighters not been there in those numbers, the heat may have caused the steel to melt, and the tower just may have collapsed.

BrandonJXN · #**4395** Posted **Apr 11, 2008, 6:23 PM**

When was the last time that you have heard of a skyscraper collapsing due to fire?

colemonkee · #**4396** Posted **Apr 11, 2008, 6:24 PM**

I like it! That plaza has always been separated from the sidewalk.

Just-In-Cali · #**4397** Posted **Apr 11, 2008, 7:06 PM**

Quote:

Originally Posted by ThreeHundred

When was the last time that you have heard of a skyscraper collapsing due to fire?

Surprisingly enough, JD is right on that one. I read the fire report that was posted about the 88 fire at 707 ( I think it was 88) and have seen several programs that featured high rise fires.
The fire captain at the time had heard from engineers that if left unchecked, the fire could weaken the steel enough to cause a collapse of the tower. They had even evacuated are area several blocks around in case of a collapse.
In light of 9-11, we have seen how fire can bring down a skyscraper.

And I agree completely, LA's Live and Central and Grand Ave will bookend downtown and are perhaps the most important projects under way. They might just bring enough critical mass of retail and entertainment to push DT from "developing" to fully fledged center of entertainment. Even now it is rivaling Westwood and parts of Hollywood for the buzz of activity.

JDRCRASH · #**4398** Posted **Apr 11, 2008, 7:15 PM**

Quote:

Originally Posted by ThreeHundred

When was the last time that you have heard of a skyscraper collapsing due to fire?

I mean the heat. The WTC collapsed due to the heat melting the steel beams.

Quixote · #**4399** Posted **Apr 11, 2008, 7:19 PM**

Quote:

Originally Posted by yeah215

Wasn't Park 5th also supposed to include 5-star hotel? Are they any rumors about which one that would be?

Supposedly, they're in talks with an upscale Asian hotel brand. There was speculation that it might be Shangri-La, since they don't have a presence in the LA area.

Echo Park · #**4400** Posted **Apr 11, 2008, 7:29 PM**

Quote:

Originally Posted by Just-In-Cali

And I agree completely, LA's Live and Central and Grand Ave will bookend downtown and are perhaps the most important projects under way. They might just bring enough critical mass of retail and entertainment to push DT from "developing" to fully fledged center of entertainment. Even now it is rivaling Westwood and parts of Hollywood for the buzz of activity.

I've always ribbed on LA Live because I hate the design and the whole insular mall feel I believe it somewhat gives off and the ugly shameless preoccupation with massive billboards. But one thing I will give credit to the project for is it will achieve one thing DTLA has always lacked: stability. LA Live is here to stay, meaning whatever tenuous grip the economy has on DTLA, we can now guarantee that there will always be activity in DTLA because so many events will be held there thanks to LA Live and there will be a flow of people. The same could be said for Staples Center, and certain Staples Center helped jumpstart the DTLA renaissance, but La Live is a more fleshed out project that will give that area a bit more of a hollywood feel