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Originally Posted by caligrad
I honestly expected this to happen. The entitlement process for LA (not sure how it rates in other cities) feels incredibly slow in comparison to almost anywhere else. I could imagine a developer coming in saying "dude I just want to build without dealing with the 4-5 year waiting period".
This is easy money for the developer.... Deal with all the red tape and waiting period....to sell a shovel ready project, at double, to someone else with the funds and capital to build. I can understand a year for processing. But I feel it takes the city 2 years just to say, "can you change the type of gate for the garage before we approve?".
Imagine a developer doing this for 20+ projects all around downtown, specifically the arts/6th street bridge area, to quickly sell to the highest bidder. Just have to pray it doesn't turn into the Barry Shy/ Chetrit affect.
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The problem as I see it is that you can get a project approved that may not make sense financially to developers. It doesn't seem like many entitled projects offered for sale, especially big ones like this, ever work out as envisioned unless there's already an interested, silent developer waiting in the wings. Most never seem to happen at all and the few that do happen get smaller. The Relevant Group project on Grand between 8th/9th was initially entitled by others and is getting a little bigger, but that seems to be the exception. There's just no way of knowing whether this will interest anyone.
Look at what's happened to the entitled property with the obscene electronic Billboard on Washington. It's just sitting there with no interest.
I've always tried to not get my expectations too high unless there's an actual developer that's built something tied to the project. Maybe this is an example.