LOS ANGELES | Downtown Project Rundown 3.0

[colemonkee]

Related would be a good candidate, but they're a little over-invested in LA with the Grand Avenue project. I would think Hanover would be a better candidate. They're finishing up 717 Olympic, and the Medallion could be a good second development to help build a LA rental portfolio.

[Affrojuice]

I came across this interesting youtube video. It is a case study into what makes a downtown lively and attractive to people. The city they look at is Ann Arbor, MI but the conclusions are universal to any downtown. Some of you might enjoy this.

http://www.youtube.com/watch?v=VsrqBHEOT0k&feature=related

[colemonkee]

I updated the first page accordingly:

1. Added Avalon Matsu (Block 8) to the proposed section.
2. Created the "On Hold" section.
3. Moved the Medallion, Herald Examiner and 850 S. Hope to On Hold, with their respective status.

I'll wait to move anything else to On Hold until we get confirmation that they are more than a year off. Obviously, many projects qualify as "on hold" right now - probably the majority of the proposed section, but I'll keep them in proposed for now until we hear definitely otherwise.

[luckyeight]

Originally Posted by colemonkee

I updated the first page accordingly:

1. Added Avalon Matsu (Block 8) to the proposed section.
2. Created the "On Hold" section.
3. Moved the Medallion, Herald Examiner and 850 S. Hope to On Hold, with their respective status.

I'll wait to move anything else to On Hold until we get confirmation that they are more than a year off. Obviously, many projects qualify as "on hold" right now - probably the majority of the proposed section, but I'll keep them in proposed for now until we hear definitely otherwise.

will be on hold due to high price of steel and demand until
it stabilize. I have to V.E. my project due high cost of steel
per owner's request or it won't happen. Steel is 70% expensive
from 3 months ago and still climbing. Shipping and delivery are
going up in cost. 1/3 of steel are manufactured in China and
almost most of it are going to Dubai. However, hotel projects
are very strong around the globe. Monolithic concrete structure
is the only way to go.

[LosAngelesBeauty]

Originally Posted by Affrojuice

I came across this interesting youtube video. It is a case study into what makes a downtown lively and attractive to people. The city they look at is Ann Arbor, MI but the conclusions are universal to any downtown. Some of you might enjoy this.

http://www.youtube.com/watch?v=VsrqBHEOT0k&feature=related

Just watched the whole thing, and it was pretty interesting. However, instead of thinking about Downtown LA most of the time, I was thinking about Old Town Pasadena since Ann Arbor kind of reminds me of a smaller version of Old Town.

Pasadena is successfully integrating the Civic Center and Paseo Colorado with the bustle of Old Town Pasadena. According to Pasadena's wesbite, they will be starting a new streetscape improvement project all around the City Hall. Planting new trees, adding a large fountain on the street in front of the City Hall, adding new benches and lamp posts. I think after its done, it will really help create a very strong identity for Pasadenaens and continue to build upon that success.

The next thing they need is a street car system like Portland on Green Street to tie in Old Town, Paseo Colorado, the Playhouse, South Lake Ave, and Caltech/Pasadena City College.


http://www.ci.pasadena.ca.us/planninganddevelopment/developmentprojects/ccmt.asp

[Easy]

Originally Posted by colemonkee

I'll wait to move anything else to On Hold until we get confirmation that they are more than a year off. Obviously, many projects qualify as "on hold" right now - probably the majority of the proposed section, but I'll keep them in proposed for now until we hear definitely otherwise.

Not only the proposed. Is there a project in the approved section that anyone thinks will break ground within the next year? I could possibly see some phase of LA Central breaking ground. That's about it and that's likely a long shot. The more time that goes by the more likely it is that some or all of these projects are no longer "on hold" and are just dead. If the price of materials has changed as much as everyone is saying it makes sense to start from scratch. That may be hard for Grand, but some of these may get totally reworked.

[LosAngelesBeauty]

Originally Posted by luckyeight

will be on hold due to high price of steel and demand until
it stabilize. I have to V.E. my project due high cost of steel
per owner's request or it won't happen. Steel is 70% expensive
from 3 months ago and still climbing. Shipping and delivery are
going up in cost. 1/3 of steel are manufactured in China and
almost most of it are going to Dubai. However, hotel projects
are very strong around the globe. Monolithic concrete structure
is the only way to go.

Hopefully the costs of land acquisition will decrease as undeveloped land depreciates again after a lengthy dormancy. And as housing prices continue to plummet, lower land costs and cheaper real estate may allow developers to pencil out future developments.

Plus, there are some steel mills in the USA still and I'm wondering how much steel goes for if you purchase it domestically, as opposed to buying it from companies that manufacture it in China. As shipping costs skyrocket because of unprecedented fuel costs, it may cancel out the economic benefits of buying steel abroad. (In addition to the "Dubai effect").

I heard there was a relatively recent discovery in Minnesota of a iron field where the ore can be mined to make high-grade steel. Perhaps contractors working on projects in LA could secure their resources from there for a possibly cheaper alternative.

[WonderlandPark]

Originally Posted by LosAngelesBeauty

Hopefully the costs of land acquisition will decrease as undeveloped land depreciates again after a lengthy dormancy. And as housing prices continue to plummet, lower land costs and cheaper real estate may allow developers to pencil out future developments.

Plus, there are some steel mills in the USA still and I'm wondering how much steel goes for if you purchase it domestically, as opposed to buying it from companies that manufacture it in China. As shipping costs skyrocket because of unprecedented fuel costs, it may cancel out the economic benefits of buying steel abroad. (In addition to the "Dubai effect").

I heard there was a relatively recent discovery in Minnesota of a iron field where the ore can be mined to make high-grade steel. Perhaps contractors working on projects in LA could secure their resources from there for a possibly cheaper alternative.

The cost of commodities are the cost they are. Like oil, transportation doesn't matter much. Shipping by sea adds only a few % points to the total cost. The same goes for any input resource. Wheat costs the same to any country on earth, whether it is used here or goes to Europe or China. We are in a global world, growing or mining a commodity domestic means really nothing, outside of those nations that artificially surpress the market, like the Iranians selling oil in their own nation for under a dollar.

As for using domestic ore,
Minnesota Taconite is shipped on the Lakes to Michigan or Ohio, but then as steel it goes by land (rail) to California. That negates any savings by using a domestic ore source. Thus steel costs the same here as it would from China.

Shipping by sea is a very efficient way of moving goods, even with high oil costs, shipping over ocean is an order of magnitude cheaper than by any land means.

[Affrojuice]

Originally Posted by LosAngelesBeauty

Just watched the whole thing, and it was pretty interesting. However, instead of thinking about Downtown LA most of the time, I was thinking about Old Town Pasadena since Ann Arbor kind of reminds me of a smaller version of Old Town.

Pasadena is successfully integrating the Civic Center and Paseo Colorado with the bustle of Old Town Pasadena. According to Pasadena's wesbite, they will be starting a new streetscape improvement project all around the City Hall. Planting new trees, adding a large fountain on the street in front of the City Hall, adding new benches and lamp posts. I think after its done, it will really help create a very strong identity for Pasadenaens and continue to build upon that success.

The next thing they need is a street car system like Portland on Green Street to tie in Old Town, Paseo Colorado, the Playhouse, South Lake Ave, and Caltech/Pasadena City College.


http://www.ci.pasadena.ca.us/planninganddevelopment/developmentprojects/ccmt.asp

I was thinking of Pasadena as well, but was also thinking about streets downtown like Broadway. If done right I think Broadway could become the major pedestrian walking downtown thoroughfare . All of the interesting architecture is there, contributing to the historic urban feel. Next they should take out a lane going each direction to slow the traffic and widen the sidewalks to put in a ton of trees and planters. Then restaurants would be able to have outside seating and get a ton of people onto the sidewalks. The great thing about Broadway as well is that from 3rd to 9th there is relatively few dead zones, and a ton of store fronts with existing retail, with room to add increased retail.

I just hope the planners of the Broadway revitalization project understand some of these concepts that were presented in that case study.

[JDRCRASH]

WHA?, Medallion construction stopped?!

NOOOO!!!!!!!

God this is getting soooo annoying!!!!

Originally Posted by colemonkee

I updated the first page accordingly:

1. Added Avalon Matsu (Block 8) to the proposed section.
2. Created the "On Hold" section.
3. Moved the Medallion, Herald Examiner and 850 S. Hope to On Hold, with their respective status.

I'll wait to move anything else to On Hold until we get confirmation that they are more than a year off. Obviously, many projects qualify as "on hold" right now - probably the majority of the proposed section, but I'll keep them in proposed for now until we hear definitely otherwise.

The fact that you've recently created such a category shows that the economic climate is not getting better so far.

[JDRCRASH]

Originally Posted by edluva

But what hopefully that means is that people will start to migrate en masse from the exurbs into Downtown LA, helping these stalled developments gain enough steam to finish up. But what will happen to those exurbs? Will they become slums or ghost towns?


^^pipe dreams.

and this has something to do with china, but much, much more to do with that thing mentioned in the news called...uh.....mmm.......uhh........oh yeah, the mortgage crisis.

On what basis have you come to the conclusion of that? If consumers are being bogged down by financial woes and pressures, how can they afford large payments for expensive, non-gasoline consuming vehicles when they could cheaply take public transportation wherever possible?

[edluva]

hmmm, guess i never thought of that...




.....probably because it has absolutely nothing to do with my reply

[colemonkee]

Regarding the Medallion, check out the picture of Saeed Farkhondehpour in the Downtown News. I'm sorry, but the dude looks like a total douchebag. No wonder he's stopping construction on the Medallion. He needs more cash for crazy floral shirts. Those aren't cheap.

In another sign of the mortgage crisis affecting development, The Chapman Lofts at 8th and Broadway are going rental, even with 62.5% of the units sold as of February. Apparently a lot of those people can't close on their loans now due to tighter lending standards. Full story in the Downtown News.

[LongBeachUrbanist]

Originally Posted by JDRCRASH

On what basis have you come to the conclusion of that? If consumers are being bogged down by financial woes and pressures, how can they afford large payments for expensive, non-gasoline consuming vehicles when they could cheaply take public transportation wherever possible?

Are you comparing a $25,000 vehicle purchase to a $600,000 condo purchase? What exactly is your point?

[DowntownCharlieBrown]

Appears this one is coming back to life as an 18 story building.

From Curbed LA
http://la.curbed.com/archives/2008/05/mystery_tower_h.php#reader_comments



Downtown's Trinity Towers project (though there's only one tower by our count) is heading for a Planning Department hearing on May 21. Hey, by the time these get built the housing market should be just fine, right? What we know: The 18-story, 64-unit condominium building on the southeast corner of 8th and Garland has 144 parking spaces and is being designed by GDS Architects. The developer bills itself as "AEG Downtown," though that stands for American Eastern Group and not Anschutz Entertainment Group (the developers of nearby LA Live). Unsubstantiated rumor has it that AEG chairman Philip Anschutz's son is developing the Trinity Towers. Any clarification from the audience?

[colemonkee]

I believe the original proposal was for 31 stories, which would have looked better on the skyline, but this would be just fine, IMO. I'll have to update the front page when I get a chance.

[DJM19]

Yeah, it was 31 before. I count more than 18 floors on that new render, but maybe my counting is just off.

Speaking of the front page. Its so depressing! So many projects I want to see built, and we haven't heard about in a long time.

[LosAngelesBeauty]

IMO, the developments in Downtown LA should take place from the center and then develop out from that. If that Trinity Tower was built, let's say, at the NW corner of 8th/Grand, it would do A LOT more for Downtown than its current proposed site. The main issue with Downtown LA development right now is that all the developments are in their own little pocket-islands. Nothing has created a real substantial walkable neighborhood. The closest example MIGHT BE Little Tokyo.

Development needs to take place in the center of Downtown LA and create a critical mass of them. We're seeing that at Concerto around LA Live, but we need MUCH MORE of that to make a big difference for the future of Downtown LA as a much more lively district.

[DowntownCharlieBrown]

^I hate to sound easy, but I'll take it where I can get it.

I agree with you LAB, that if the all new development started from the center and was linked to that center, that we would have "walkable" neighborhoods sooner. But there would be no way to say "OK, next developer in line, you build here."

I do believe just about all the buildable space in DT is spoken for, it's just getting developments off the ground during this economic crunch. Most of the developments near the "center" are larger, as they should be (Park Fifth, Zen, Maguire). I do think Trinity (while I would prefer a larger one) is the right size for its location.

[citywatch]

Originally Posted by ThreeHundred

From the way citywatch has been clamoring for this building, you would think that is the end all be all building for downtown.

It's important mainly to the OBD cuz to the casual visitor that part of DT doesn't look like anything has changed for the better----in terms of totally new devlpt----in yrs & yrs. At a quick glance, some may believe the renovated, converted old bldgs aren't in any better shape than other nearby old bldgs that still haven't received any TLC. IOW, a brand new bldg may make such ppl sit up & take notice.

More importantly, the site of the Medallion formerly was a huge, fugly gap, esp when empty of cars & ppl at night. Talk about a killer of a friendly atmosphere around 4th & Main.

And I liked to think I was being overly dramatic when I said I no longer was pinning my hopes on groundbreaking of totally new projs, but only on existing projs under construction at least not halting work in mid stream. Or what first happened to the Concerto tower in early 2007 & this past wk, of course, the Medallion. But after hearing about the devlpr of 717 9th, I'm getting really worried right now. Also, as is the case with the Hanover tower, I didn't realize 717 is going to be rental bldg:


Meruelo Maddux Tumble Puts Los Angeles on Sale at 65% Discount

By Peter J. Brennan

May 11 (Bloomberg) -- A package of Los Angeles real estate on sale for 35 cents on the dollar is attracting investors to the depressed shares of Meruelo Maddux Properties Inc., the biggest private landowner in the city's four-square-mile downtown. The stock has plummeted 85 percent since an initial public offering 15 months ago as the global credit crisis threatens to disrupt refinancing of $200 million in mortgage debt coming due in the next 12 months, as well as completion of the city's tallest downtown residential tower.

Meruelo Maddux owns or controls 80 acres including the Little Tokyo Shopping Center, home of the country's largest Japanese supermarket, as well as warehouses and buildings used in Tom Cruise's action film ``Mission Impossible III.''

"It sure looks like a cheap way to play the downtown L.A. market,'' said Mike McGarr, a portfolio manager at $2.4 billion Becker Capital Management in Portland, Oregon, which has added shares this year and owns 1.55 million. "You're not hanging your hat on a few properties. You've got about 50 properties in various states of development or redevelopment.''

Meruelo Maddux's market capitalization of $142 million is about a third of the book value of its properties minus debts. Loan payments and maintenance consume $500,000 a month more than the company takes in, eroding the developer's $13.5 million in cash.

To raise money, the company said May 2 it may sell up to $300 million worth of stock, warrants or debt. It's also delaying projects and selling holdings including a 119,000-square-foot (11,055-square-meter) distribution center leased by FedEx Corp.

Meruelo Maddux's biggest bet is that people will want to live downtown, where 500,000 work but only 35,000 dwell.

"Twenty years ago, it was dead -- when 5:30 rolled around, the sidewalks were rolled up,'' said Mark Tarczynski, 52, a senior vice president at CB Richard Ellis Group Inc., who moved into the area a decade ago. Now, when the National Basketball Association's Los Angeles Lakers play at Staples Center or concerts are held at Nokia Theatre, "this place rocks.''

Meruelo Maddux is building a 34-story rental tower, known as 717 Ninth, that will be Los Angeles's tallest downtown residential structure. Twenty floors have been erected so far. The building is across the street from a 50,000-square-foot Ralphs Grocery Co. outlet, the first supermarket-chain store to open downtown in more than 50 years.

While a "large bank'' pulled out of a $97 million construction loan for the tower in January, the project will be completed on time next year, Meruelo told analysts on a March 31 conference call, without identifying the lender. The company is negotiating a new loan, he said.