While I agree that the slow pace of the Grand Avenue Project is frustrating, the long delays starting in 2008 rest squarely on the shoulders of the global recession. All things considered, I think Related Cos. deserves to be cut some slack.
The Grand Avenue Project is a huge undertaking, and it's made even more difficult by the fact that any changes to the development program and design require the approval of both the LA County Board of Supervisors and the Grand Avenue Authority. For example, the GAA's decision to reject the RAMSA design for phase one last year forced them to go back to the drawing board (again), delaying the scheduled groundbreaking by nine months.
As it stands, it isn't as if Related has sat around doing nothing. They paid over $50 million out of pocket for Grand Park, they've nearly completed the Emerson/Parcel M tower, and they're providing a 20% affordable housing component for the entire project (almost double what is normally required to receive a density bonus).
Related also has to live with financial realities that some of the other developers mentioned aren't restricted by.
The Greenland Group is owned by the Chinese government, which gives them much easier access to financing. Their sudden investment in Downtown is partially a response to demand for condos, but it's also a response to their more volatile real estate market at home. Lots of Chinese investors are parking their money stateside because the market is more stable, as evidenced by their home buying sprees in Orange County and the San Gabriel Valley.
The Wilshire Grand is essentially a $1 billion vanity project for Korean Airlines and the Hanjin Group. It's not a response to existing market conditions, and the developers have basically admitted as much. Although I'm sure they're hoping to turn a profit in the long run, their real purpose in the short term is to make headlines.
Last edited by blackcat23; Aug 18, 2014 at 12:31 AM.
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