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  #7301  
Old Posted Dec 25, 2014, 9:16 PM
Flavius Josephus Flavius Josephus is offline
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I wish the city would dump Related and let one of these Chinese companies take over development of 2nd and Grand. I mean what's the hold-up. They've had about 10 years now to develop that property. Even the courthouse is under construction and with these last congresses that's a small miracle in and of itself.
It hasn't been that long since the County signed off on the plans - maybe 6-8 months. Patience.
     
     
  #7302  
Old Posted Dec 26, 2014, 7:41 PM
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The Westsidification of DTLA continues!! Why is it a MUST to aim towards the upscale crowds now??
     
     
  #7303  
Old Posted Dec 26, 2014, 7:42 PM
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^^^ Land prices?
     
     
  #7304  
Old Posted Dec 26, 2014, 8:27 PM
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The Westsidification of DTLA continues!! Why is it a MUST to aim towards the upscale crowds now??
Luxury housing is only slightly more expensive to build, but yields much better returns. How many for-profit developers will volunteer to make less money than possible?
     
     
  #7305  
Old Posted Dec 26, 2014, 8:35 PM
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Luxury housing is only slightly more expensive to build, but yields much better returns. How many for-profit developers will volunteer to make less money than possible?
Yup. Its up to the city to step up and mandate the x% of new housing be affordable, and so far they haven't done anything of the sort. Its not specifically an LA problem, its a gentrification-in-the-USA problem.
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  #7306  
Old Posted Dec 26, 2014, 9:01 PM
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Here are some photos I took of Wilshire Grand when I was out there for the holidays!





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  #7307  
Old Posted Dec 26, 2014, 9:30 PM
jgacis jgacis is offline
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Luxury housing is only slightly more expensive to build, but yields much better returns. How many for-profit developers will volunteer to make less money than possible?
Don't forget zoning and restricted building heights. These are key constraints that developers must work under when conducting their financial feasibility studies and pro-forma reports. Allow for more density and the business model for what gets built can change significantly. Also, every developer has their own expected rates of return, depending on their investors and their payback periods (short or long-term).

There's a reason why almost all these short stumpy projects are luxury types. Land acquisition costs are expensive, in the tens of millions sometimes. That already sets a high bar on the break-even costs projected for each unit. The constraint is the zoning that caps how many units can be built. This can severly limit the profit margins for a project. Thus, many developers "upscale" the project (pools, spas, gyms, valet, etc.) and charge a premium for these amenities. This is the common business strategy that makes many of these luxury apts/condos pencil out.

If zoning allows for more units to be built, then the basic concept of "economies of scale" can come to fruition, with less reliance on luxury amenities to pencil out profit margins. But this isn't the case for most places. Zoning, for good or bad, places limits on how many units can be built, even on expensive land that demands higher utilization (more units) to justify the costs.

Last edited by jgacis; Dec 27, 2014 at 9:09 AM.
     
     
  #7308  
Old Posted Dec 26, 2014, 9:35 PM
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They're slowly poking out holes on the Broad facade, lol! They're working on the top row and right column
architects always take artistic license when it comes to the artwork of their projs, but the designers of the broad seemed to really allow the illustrators....or computer graphics ppl.....to exaggerate the look of the museum's exterior. They made the facade of the museum look much lighter, transparent & more textured than it has turned out. But if it were just a set of 4 flat, plain walls, & just plain concrete....as some major contempo art museums over the past 10 yrs have been....that wouldn't have been very good at all. whatever the exterior, the interior looks like it will be a good space for exhibitions.....



thebroad.com


thebroad.com

Our museum's second floor conference room gives visitors
an inside-looking-outward view of the building's veil:



thebroad.com


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Los Angeles: City of Art

The city’s art scene is growing at a steady and sustainable pace, which for the laid-back local artists and galleries is a nice break from New York’s aggressive market

By Maura Egan
Dec. 4, 2014

“NEW YORK CITY IS 0 TO 100,” explains Hannah Hoffman, perched on a long communal table at her Hollywood art gallery. “There’s no middle ground. Here in Los Angeles, it’s a little bit of a free-for-all.” Hoffman had been working at Gavin Brown ’s Enterprise in New York when she pulled up stakes two years ago and decided to head west. She didn’t have any real plans to open a gallery; she was just trying to figure out how to live an easier life. But once she arrived, the idea didn’t seem like such a lofty ambition. “There was no standard, no structure,” she says, “sort of like the strange zoning here.”

Hoffman found her space on a quiet strip in the Highland Avenue neighborhood. Once the domain of prostitutes and junkies, the area was being colonized by artisanal restaurants and designer boutiques. Regen Projects, one of L.A.’s blue-chip stalwarts, had settled into a 20,000-square-foot space around the corner. About the same time, Hoffman met Erin Falls, another New York transplant, who had worked at Deitch Projects and Mary Boone Gallery. Falls, who is married to the artist Sam Falls—he is on the gallery’s roster—became Hoffman’s director. “It’s much smaller here,” Hoffman says, “and there’s not as much outside affirmation, so you can do your own thing.”

While the New York art world’s rapid-fire pace and go-go market attitude can quickly tamp down an artist’s creativity, L.A.’s laid-back vibe lets artists breathe a little more easily. The rents are cheaper, the spaces are bigger and there’s a close-knit community.

In fact, Los Angeles seems to be having a New York moment. But as much as the L.A. arts community seems excited by the current spotlight on its city, it’s also a bit nervous. Artists universally shrink from comparisons to New York—and not because they harbor an inferiority complex. Rather, L.A. is their well-guarded secret—and they’re worried it could be ruined.

The L.A. scene is founded on art-school intellectualism and a vigorous discipline—which may seem ironic given that the general perception of the city’s culture is that it’s all about surface. “There are young artists in New York who are selling paintings for six figures, and I don’t think most of the work would have made it through any of the grad programs out here,” Gavlak says.

“People move to New York to become artists with a capital A. Not here,” says Sam Falls. Sure, there is an art market, and there are openings and power players, but there is a welcoming, communal vibe to it all. “I see making my art as almost a blue-collar job. There’s a simplicity to being an artist here,” says Falls. In fact, he and Erin have punched the clock and are about to hit the beach. “It’s one of the best things about living here,” says Erin. Sam looks a little protective of their creative paradise as he says goodbye. “Things are happening here, but I don’t want L.A. to turn into New York. It’s on the precipice right now.”





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Originally Posted by ChelseaFC View Post
Fig Central to break ground early 2015, to open in 2018


It has been quite a wait since the false alarm of several yrs ago when the previous owner built a wood construction barricade around that same site, but, as everyone knows, nothing happened.

the sense of momentum should really increase when that proj is completed & complements other things in the hood, such as LA live when ppl are out & about & enjoying formerly vacant parts of dt.....


Video Link




Quote:
Originally Posted by ThomJames View Post
I wish the city would dump Related and let one of these Chinese companies take over development of 2nd and Grand. I mean what's the hold-up. They've had about 10 years now to develop that property. Even the courthouse is under construction and with these last congresses that's a small miracle in and of itself.
this pic posted at the other city devlpt website shows just how much of a gap still exists up on bunker hill, across from disney hall, where the related proj is supposed to go up. I thought frank gehry's redesign for the grand ave proj was supposed to be released in october, but it has been now 3 months & not a word out of related co.

With all the big projs now underway south of BH, dtla is becoming top heavy in that direction, so the related cos really does need to get its act together.



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  #7309  
Old Posted Dec 27, 2014, 12:54 AM
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thebroad.com

Juxtaposing the Broad to the WDCH makes for an interesting contrast in textures.
     
     
  #7310  
Old Posted Dec 27, 2014, 1:33 AM
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Originally Posted by DistrictDirt View Post
Yup. Its up to the city to step up and mandate the x% of new housing be affordable, and so far they haven't done anything of the sort.
You're talking about an inclusionary zoning ordinance, which the city had until Palmer sued over it and won.
     
     
  #7311  
Old Posted Dec 27, 2014, 1:39 AM
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Originally Posted by jgacis View Post
Don't forget zoning and restricted building heights. These are key constraints that developers must work under when conducting their financial feasibility studies and pro-forma reports. Allow for more density and the business model for what gets built can change significantly.
Low-density zoning isn't an issue downtown (though I'm sure it is for other areas of the city), it's more the price jump from wood-framed construction to steel or concrete. If I remember right from earlier in the thread, once you go steel you're looking at 20-something stories before the per-square-foot cost of construction becomes reasonable, and you have to go even higher to make a better return. At that project size, the financial requirements are probably beyond most developers.
     
     
  #7312  
Old Posted Dec 27, 2014, 4:49 AM
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Low-density zoning isn't an issue downtown (though I'm sure it is for other areas of the city), it's more the price jump from wood-framed construction to steel or concrete. If I remember right from earlier in the thread, once you go steel you're looking at 20-something stories before the per-square-foot cost of construction becomes reasonable, and you have to go even higher to make a better return. At that project size, the financial requirements are probably beyond most developers.
For downtown, yes I'll agree with you on this - and not all developers are the same. Even when zoning isn't an issue, NIMBYS can be. Perfect example is the Arts District. Thus I think Huizar's proposed moratorium does have some merit, although others may disagree.
     
     
  #7313  
Old Posted Dec 27, 2014, 5:35 AM
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Originally Posted by sportbiker View Post
Low-density zoning isn't an issue downtown (though I'm sure it is for other areas of the city), it's more the price jump from wood-framed construction to steel or concrete. If I remember right from earlier in the thread, once you go steel you're looking at 20-something stories before the per-square-foot cost of construction becomes reasonable, and you have to go even higher to make a better return. At that project size, the financial requirements are probably beyond most developers.
That may be changing. I think its the 8th and Hope project that's using a new technique for constructing a low rise with steel that is supposed to be fairly cost effective although still more expensive than wood frame.
     
     
  #7314  
Old Posted Dec 27, 2014, 5:34 PM
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Originally Posted by ThomJames View Post
I wish the city would dump Related and let one of these Chinese companies take over development of 2nd and Grand. I mean what's the hold-up. They've had about 10 years now to develop that property. Even the courthouse is under construction and with these last congresses that's a small miracle in and of itself.
Related Cos. is governed by financial realities that the Greenland Group, which is owned by the Chinese government, doesn't have to deal with. It's not an apples-to-apples comparison.
     
     
  #7315  
Old Posted Dec 27, 2014, 7:12 PM
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With 8th and Grand going up this is the last parking lot on Olive between 7th and 8th. Hopefully it bites the dust soon!

Retail DT 12/11 by thaeisahtbizall, on Flickr

The parking lot is next to this. I wonder if they are on the same lot or not.

Commercial Exchange and nearby by thaeisahtbizall, on Flickr
What's this going to be again?

Retail DT 12/11 by thaeisahtbizall, on Flickr


When we moved in they claimed this retail space had been rented, but I just asked the concierge and he said that fell through. Hopefully something goes in there, it's a pretty beautiful space (it used to be the leasing office for the building but they moved that inside the apt building portion)

Retail DT 12/11 by thaeisahtbizall, on Flickr

The following photo by user "Shabdro Photo" of 888 Olive is pretty damn sweet
https://www.flickr.com/photos/shabdro/16092545471/
     
     
  #7316  
Old Posted Dec 27, 2014, 7:26 PM
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Originally Posted by Eightball View Post
With 8th and Grand going up this is the last parking lot on Olive between 7th and 8th. Hopefully it bites the dust soon!

Retail DT 12/11 by thaeisahtbizall, on Flick

The following photo by user "Shabdro Photo" of 888 Olive is pretty damn sweet
https://www.flickr.com/photos/shabdro/16092545471/

I definitely like the chrome doors and the curved glass. Surprised the space hasn't been scooped up yet.
     
     
  #7317  
Old Posted Dec 27, 2014, 7:39 PM
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Agreed
     
     
  #7318  
Old Posted Dec 27, 2014, 9:21 PM
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Would've killed for the GAP Factory Store to look even slightly like that.
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  #7319  
Old Posted Dec 28, 2014, 12:40 AM
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Related Cos. is governed by financial realities that the Greenland Group, which is owned by the Chinese government, doesn't have to deal with. It's not an apples-to-apples comparison.
I'm not sure I agree with you on that. Related is one of the larger development companies in the US, like Greenland is in China. They found money to build the recently completed apartment tower on Bunker Hill. A few years ago, their position was understandable, as the credit market in the US were mostly frozen. But it seems that many developers other than the Chinese are finding financing to build things in downtown.

My main point is that Related seems to really be dragging their feet on this project. As Citywatch mentioned, they were supposed to release finals plans several months ago, and we haven't really heard a peep. I think the city council needs to hold Related accountable and give them a hard deadline to either start construction, or walk away from the project.

2nd and Grand is one of the premier parcels of land in the Civic Center, and with the Broad Museum getting ready to come on-line, it would really be nice to get something going here. Related has had ten years to build. Even though a few of those years it may have been financially infeasible, the last couple of years the economy has improved and shovels should be in the ground at this point. If they can't or unwilling to construct, let someone else do it!!
     
     
  #7320  
Old Posted Dec 28, 2014, 1:59 AM
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I'm not sure I agree with you on that. Related is one of the larger development companies in the US, like Greenland is in China. They found money to build the recently completed apartment tower on Bunker Hill. A few years ago, their position was understandable, as the credit market in the US were mostly frozen. But it seems that many developers other than the Chinese are finding financing to build things in downtown.

My main point is that Related seems to really be dragging their feet on this project. As Citywatch mentioned, they were supposed to release finals plans several months ago, and we haven't really heard a peep. I think the city council needs to hold Related accountable and give them a hard deadline to either start construction, or walk away from the project.

2nd and Grand is one of the premier parcels of land in the Civic Center, and with the Broad Museum getting ready to come on-line, it would really be nice to get something going here. Related has had ten years to build. Even though a few of those years it may have been financially infeasible, the last couple of years the economy has improved and shovels should be in the ground at this point. If they can't or unwilling to construct, let someone else do it!!
If there were comparable projects being built in Downtown by American companies, I'd agree with you. But there aren't. Fig Central and Metropolis are backed by Chinese capital. The Wilshire Grand is a glamor project for Korean Airlines.

American developers have different expectations, and employment/wage growth in LA hasn't been as robust as in places like SF or Houston.

Related is also subject to the will of the Grand Avenue Authority. All changes to the design or development program must receive their approval. Related had originally planned to break ground on Parcel Q in March 2015, but the rejected RAMSA design set the whole process back nine months.

That being said, it does look like a lot of developers are betting heavily on next year. Barring another financial crisis, Related should have no excuse for missing the December 2015 groundbreaking deadline. The only thing that has me a little bit worried is the current situation with Sam Nazarian.
     
     
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