LOS ANGELES | Downtown Project Rundown 3.0

[RAlossi]

I dunno. "faux-urban"? Broadway is about as urban as it gets. Pedestrian streets can and do work in certain places, if done correctly. I'm all for it.

Then again, it's not on my "priority list" when it comes to things that need to be done in Downtown, so whatever.

Hey, that LA Live construction cam #1 is offline. Damn!

[bjornson]

One of edluva's favorite projects!

Downtown project to get really 'Live'
Construction will start on a complex housing two major hotels and luxury condominiums near Staples Center.
By Roger Vincent, Times Staff Writer
June 1, 2007

It's been the dream of downtown boosters for decades. And today, that vision will finally begin to take shape as crews begin to erect a high-rise, high-end hotel complex adjoining the Los Angeles Convention Center.

The project faced a major obstacle last year when developer AEG lost its financial partners.

At a ceremony today, AEG plans to announce that Wachovia Corp. and investment firm MacFarlane Partners have signed on to help finance the 54-story, $900-million hotel and condominium complex — the cornerstone of the $2.5-billion L.A. Live entertainment center.

"This is the most important thing we have ever done as a company," said AEG President Tim Leiweke, whose company owns Staples Center and the Los Angeles Kings NHL hockey team, among other teams and arenas. "It will change the economy of not just downtown but of Los Angeles."

Civic leaders see the hotel project as crucial to attracting the kinds of big-league, national conventions that now go to places such as Anaheim, San Diego and San Francisco.

JW Marriott and upscale Ritz-Carlton will operate separate hotels in the building on Olympic Boulevard. Combined, there will be 1,001 guest rooms when the hotels open in 2010. The Marriott will also operate one of the largest ballrooms in Los Angeles, with a seating capacity of 3,000. The top 26 floors will house 224 luxury condos attended to by the Ritz-Carlton staff.

Past attempts to put hotel rooms next to the Convention Center have been plagued by doubts about their viability. But the participation of Wachovia and MacFarlane gives the project new credibility, said David Wise, a hotel consultant who is not involved in the project.

"We're talking about really big guns here," Wise said. "It's good to see such an institutional capital structure."

Wachovia is making a major push into California's consumer banking market, while San Francisco-based MacFarlane invests money for the California Public Employees' Retirement System and other big clients.

Institutional investors avoided downtown for years after the office market crashed in the early 1990s but began tiptoeing back amid a housing construction renaissance that started after 2000 and has added thousands of residents.

Many years have passed, however, since downtown has seen a new hotel built from the ground up.

"Downtown has been the redheaded stepchild with braces compared to the Westside," Wise said.

"This is really a quantum leap forward in terms of credibility about downtown's revitalization," he added.

Owners of downtown's Bonaventure Hotel tried to stop AEG's hotel plans in court, arguing that AEG will have an unfair competitive advantage because it will receive financial assistance from the city. The suit was later dropped.

The deal approved by the City Council calls for AEG to receive a rebate of at least $246 million in the hotel bed taxes it is expected to generate during the first 25 years of operation. In addition, the project is being given a $5-million grant from the city redevelopment agency and a rebate of $4 million in building permit fees.

Those concessions from the city were essential to getting the hotel started, Leiweke said.

San Francisco-based MacFarlane, which invests in urban real estate developments, will provide as much as $400 million in financing, said Chief Executive Victor MacFarlane. The company also may invest in the $2-billion Grand Avenue retail, residential and office project set to begin construction north of Staples on Bunker Hill later this year.

"We'll probably invest in the two largest bookends downtown," he said.

The terms of Wachovia's investment were not revealed, but it will be a "founding partner" in the L.A. Live project and receive exposure on large electronic signs there and in other locations around Staples Center — which will help raise its profile here, said Dan Fleischman, Wachovia's director of sponsorships.

Also helping fund construction of the hotel are the expected sales of the condominiums, which are priced at $1.5 million to $6 million.

Buyers have already made deposits on nearly half of the units, Leiweke said.

Construction is well underway on other portions of L.A. Live, including the 7,100-seat Nokia Theatre and a separate studio building for sports broadcaster ESPN.

The theater is set to open in October and is expected to host such events as the Emmy Awards, Country Music Awards and Miss USA pageant.

The 4-million-square-foot development also will have movie theaters, restaurants, nightclubs, a bowling alley, offices and the Grammy Museum, all expected to be completed by 2010. Other developers have completed or are in the process of building almost 1,700 apartments and condos on blocks nearby.

Supporters hope L.A. Live will attract millions of visitors who have seen it on television or who are attending a convention.

"The visitor impact will be huge," said economist Jack Kyser of the Los Angeles Economic Development Corp. "And the hotel will put us back in the game of attracting major business shows.

"I've been waiting at least 20 years for this."

[Quixote]

The long anticipated groundbreaking of the Ritz has finally arrived. I've been waiting for this day for God knows how long. No more waiting.

[Steve2726]

Also helping fund construction of the hotel are the expected sales of the condominiums, which are priced at $1.5 million to $6 million.

"Buyers have already made deposits on nearly half of the units, Leiweke said."

Wow, that is amazing!

[fridayinla]

Originally Posted by Steve2726

Also helping fund construction of the hotel are the expected sales of the condominiums, which are priced at $1.5 million to $6 million.

"Buyers have already made deposits on nearly half of the units, Leiweke said."

Wow, that is amazing!

Great news! Hopefully this news encourages other developers in downtown about the market's strength.

Downtown rocks!!

[LAMetroGuy]

Originally Posted by Steve2726

Also helping fund construction of the hotel are the expected sales of the condominiums, which are priced at $1.5 million to $6 million.

"Buyers have already made deposits on nearly half of the units, Leiweke said."

Wow, that is amazing!

I bet none of those buyers read cubed la!

[LosAngelesSportsFan]

LOL! cant wait to see this go up. if the 50% mark is accurate that should definitely encourage the Titan developers as well as Park Fifth!

[LAMetroGuy]

L.A. LIVE Welcomes New Cornerstone of Emerging Vibrant Downtown District With Hotel and Residences Groundbreaking Today; Major Financial Investors in Hotel and District Also Announce

LOS ANGELES, June 1 /PRNewswire/ -- AEG, developers of L.A. LIVE, the world-class sports, entertainment and residential district being built in downtown Los Angeles, will break ground today on a 1,001-room hotel/224-room residence tower that will serve as the project's anchor, at a ceremony led by California Governor Arnold Schwarzenegger and Los Angeles Mayor Antonio Villaraigosa.

Also on hand to mark the start of construction of the 54-story, Class A high-rise will be Los Angeles City Council Members Jan Perry and Janice Hahn; Speaker of the California State Assembly Fabien Nunez; Chairman & Chief Executive Officer, Marriott, International Inc., J. W. Marriott, Jr.; and President and CEO of AEG Timothy J. Leiweke. The hotel/condominium tower, which will total 2 million square feet on 2.5 acres of land, will contain The Ritz-Carlton Residences at L.A. LIVE, the JW Marriott and The Ritz-Carlton hotel. Scheduled for completion in early 2010, it will be the final building to commence construction on the extremely active, 27-acre L.A. LIVE site, which is adjacent to STAPLES Center and the Los Angeles Convention Center.

AEG BRINGS ON DEVELOPMENT PARTNER

Leiweke also is expected to announce that the prominent real estate investment management firm MacFarlane Partners has agreed to become substantial investors in the $900 million hotel/condominium tower. The agreement also calls for MacFarlane Partners, an experienced investor in urban development and redevelopment projects that manages more than $15 billion in real estate assets, to provide investment oversight and consultation on the continued development and implementation of the project's overall vision and business plan.

"Having MacFarlane Partners on board not only brings tremendous experience and expertise to this project, but more importantly, the confidence that they provide for us is invaluable," said Leiweke. "Victor MacFarlane, Greg Vilkin and their team are the experts at what they do and this partnership will help to make a good project great."

"Having invested in several properties in downtown Los Angeles over the past five years, we are a firm believer in downtown L.A. as a full-fledged, '18-hour city' with thriving residential, commercial and entertainment districts," said Victor B. MacFarlane, managing principal and chief executive officer of MacFarlane Partners. "L.A. LIVE promises to be one of the most exciting projects in which we've invested and it will certainly play a central role in downtown being a place for people to live, work and play."

FINANCIAL SERVICES LEADERS TO BECOME L.A. LIVE FOUNDING PARTNERS

During an early morning business leader's summit on the economic rejuvenation and investment outlook for downtown Los Angeles, Leiweke also will announce that Wachovia and AEG have entered into an agreement for the nation's fourth-largest bank holding company to become a "Founding Partner" of the entire L.A. LIVE development. The partnership calls for Wachovia to become the exclusive financial services partner of L.A. LIVE and to receive prominent branding, proprietary events, consumer promotion and client entertainment within the entire, 27-acre development.

"From the business, marketing and community perspective, Wachovia is truly the ideal organization we were hoping to bring in as a Founding Partner for L.A. LIVE," Leiweke added. "Since entering the marketplace less than six months ago, Wachovia has clearly invested in our state and community in the right ways on so many levels. While their understanding of what's important and how this city does business has been remarkable, what makes them such an outstanding company is their intelligent expansion on a business level and their total commitment to making a difference with their community initiatives."

THE RITZ-CARLTON RESIDENCES AT L.A. LIVE CREATES A NEW LIVING ENVIRONMENT

The Ritz-Carlton Residences at L.A. LIVE, a lavish collection of distinctive dwellings starting on the 27th floor, will top the 54-story L.A. LIVE tower that is set to dramatically re-shape the city's world-famous downtown skyline. Designed by world-renowned California architecture firm Gensler, the modern skyscraper is being developed as an iconic home and hotel above the bright lights of Los Angeles.

The Ritz-Carlton Residences at L.A. LIVE will offer world-class amenities and the legendary services of The Ritz-Carlton, the city's most breathtaking views from the Angeles Crest Mountains to the Pacific Ocean, and an unmatched, prestigious address at the center of the all-new L.A. LIVE. A total of 224 residences currently are available for reservation.

"The Ritz-Carlton Residences at L.A. LIVE are complemented with a world-class hotel property that answers a long-awaited need for Downtown L.A.'s millions of visitors," Leiweke said. "Nearly 50 percent of the residences have been reserved in just over a month, even before we've publicly marketed the project. The overwhelming interest proves the appetite for downtown living, especially for an exceptional residential retreat at the heart of L.A. LIVE."

THE RITZ-CARLTON AT L.A. LIVE AND JW MARRIOTT HOTEL AT L.A. LIVE

The Ritz-Carlton, a five-star luxury hotel property, will share the floors below The Ritz-Carlton Residences at L.A. LIVE with the four-star JW Marriott Hotel. A spacious layout of ballrooms, meeting spaces, rooftop decks, swimming pools, resort facilities and 1,001 hotel rooms will be available at the central hotel property, which will provide a new lodging option for the more than 2.5 million convention attendees who visit downtown Los Angeles each year.

"The Ritz-Carlton is proud to serve as a hotel ambassador for L.A. LIVE, not only for its future residents, but for all future visitors and guests of downtown L.A.," said J. W. Marriott, Jr., chairman and chief executive officer of Marriott International. "The combination of an entertainment district of this scale with such a unique hotel and residential tower project is a proposition unmatched anywhere in the world, and we look forward to providing many with a new home -- and home away from home -- in the new downtown L.A."

Additionally, The Ritz-Carlton Residences at L.A. LIVE, The Ritz-Carlton and JW Marriott Hotel at L.A. LIVE will create more than 800 full- and part-time jobs in Los Angeles after completion.

"Each and every component of this project will equip downtown with the key facilities and resources to attract the best and most important events for our city," added Leiweke. "Most importantly, our investment and that of those in the surrounding residential district combined have brought Los Angeles a fully privatized, fully financed and fully entitled development. We're proud to have this anchor hotel set in the city for one and all to see that L.A. LIVE is truly alive."

The sales and preview center for The Ritz-Carlton Residences at L.A. LIVE is scheduled to open this fall, along with the first phase of L.A. LIVE, which will include Nokia Theatre l.a. live, a 7,100-seat, live-performance theater that will host concerts, family & cultural shows, Broadway musicals, awards shows and special events; and Nokia Plaza, a 40,000-square-foot open-air plaza that will serve as the central meeting place of L.A. LIVE. The second phase, set to open in 2008, will include an array of restaurants, Club NOKIA l.a. live, a 2,400-seat standalone venue for music acts, bands and cultural shows; and ESPN's West Coast headquarters and broadcast facility. The Ritz-Carlton Residences at L.A. LIVE The Ritz-Carlton and JW Marriott Hotel at L.A. LIVE are set to open during phase three in 2010. More information can be found online by clicking the L.A. LIVE icon at http://www.aegworldwide.com/.

ABOUT L.A. LIVE

AEG is currently overseeing the development of L.A. LIVE, a four-million-square-foot, $2.5 billion downtown Los Angeles sports, residential & entertainment district adjacent to STAPLES Center and the Los Angeles Convention Center featuring NOKIA Theatre l.a. live, a 7,100-seat, live-performance theater; a 54-story, 1,001-room convention "headquarters" hotel (combining JW Marriott and Ritz Carlton brands and 224 luxury condominiums -- The Ritz-Carlton Residences at L.A. LIVE), Club NOKIA l.a. live, a 2,200 capacity, live-music venue; a 14-screen Regal Cineplex; "broadcast" facilities for ESPN along with entertainment, restaurant and office space.

L.A. LIVE will also be the region's most in-demand and busiest hospitality location, featuring 260,480 square feet of conference center and ballroom facilities; eight world-class restaurants, including the ESPN Zone, Flemings Prime Steakhouse and Wine Bar, Katsuya, The Farm of Beverly Hills, Yard House, Rosa Mexicana and dining concepts developed by Wolfgang Puck, Celestino Drago and others; a 100,000-square-foot special events deck; the famous Lucky Strike Lanes bowling center; the celebrity-owned Conga Room; and the one-of-a-kind Grammy Museum saluting the history of music and the genre's best known awards show. All of the aforementioned facilities will be centered around NOKIA Plaza l.a. live, a 40,000-square-foot outdoor event space.

ABOUT MACFARLANE PARTNERS

MacFarlane Partners is one of the leading real estate investment management firms in the United States, with $15 billion in assets under management. Founded in 1987, the firm offers an array of investment programs for its institutional capital partners that are derived from its core competencies in property development, smart growth/urban revitalization, and single-family home building.

Considered a pioneer of the urban investment concept among institutional real estate managers, MacFarlane Partners invests in real estate development, redevelopment and repositioning projects in urban and high-density suburban areas nationwide. Among the properties in which it has invested are 1100 Wilshire and Metropolitan Lofts in Los Angeles; Bay Street Emeryville and The Uptown Apartments in the San Francisco Bay Area; Half Street in Washington, D.C.; and The Shops at Columbus Circle, the retail component of the Time Warner Center in New York City.

The firm also invests in single-family residential land and housing developments in markets nationwide. To date, its investments have financed the development of 123,000 single-family homes and residential lots in 18 states with more than 100 different homebuilders.

MacFarlane Partners is headquartered in San Francisco, with regional offices in Los Angeles; Washington, D.C.; and the greater New York metropolitan area. For additional information, please visit the firm's Web site at http://www.macfarlanepartners.com/.

ABOUT MARRIOTT INTERNATIONAL

MARRIOTT INTERNATIONAL, INC. is a leading lodging company with nearly 2,800 lodging properties in the United States and 66 other countries and territories. Marriott International operates and franchises hotels under the Marriott, JW Marriott, THE RITZ-CARLTON, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Bulgari brand names; develops and operates vacation ownership resorts under the Marriott Vacation Club International, Horizons, The RITZ-CARLTON Club and Grand Residences by Marriott brands; operates Marriott Executive Apartments; provides furnished corporate housing through its Marriott ExecuStay division; and operates conference centers. The company is headquartered in Washington, D.C., and has approximately 143,000 employees at 2005 year-end. In fiscal year 2005, Marriott International reported sales from continuing operations of $11.6 billion. For more information or reservations, please visit our web site at http://www.marriott.com/.

ABOUT AEG

AEG is one of the leading sports and entertainment presenters in the world. AEG, a wholly owned subsidiary of The Anschutz Company, owns or controls a collection of companies including facilities such as STAPLES Center, The Home Depot Center, Toyota Park, Toyota Sports Center, Anaheim Convention Center Arena, El Rey Theatre, Colosseum at Caesars Palace, NOKIA Theatre at Grand Prairie and NOKIA Theatre Times Square; sports franchises including the Los Angeles Kings (NHL), Los Angeles Riptide (MLL), four Major League Soccer franchises, two hockey franchises operated in Europe, management of privately held shares of the Los Angeles Lakers (NBA) and Los Angeles Sparks (WNBA), the ING Bay to Breakers foot race and the Amgen Tour of California cycling road race; AEG LIVE, the organization's live-entertainment division, is a collection of companies dedicated to all aspects of live contemporary music performance, touring and a variety of programming and multi-media production. Additionally, the company has begun fully developing London's 28-acre Millennium Dome which includes a 23,000-seat arena, the O2 and over 650,000sf of leisure and entertainment use within the "Dome" and additional arenas; The O2 World on a 45-acre site in the heart of Berlin; Citizen's Business Bank Arena in Ontario, California; Sprint Center in Kansas City, Missouri; as well as Red Bull Park and a soccer stadium in Harrison, New Jersey. For more information, visit AEG today at http://www.aegworldwide.com/.

Contact: AEG MacFarlane Partners Michael Roth Julie Chase (213) 742-7155 (415) 433-0100 Marriott International Wachovia Roger Conner Angela English (301) 380-5605 (704) 383-0412

AEG
CONTACT: Michael Roth of AEG, +1-213-742-7155; or Julie Chase of
MacFarlane Partners, +1-415-433-0100; or Roger Conner of Marriott
International, +1-301-380-5605; or Angela English of Wachovia,
+1-704-383-0412

Web site: http://www.macfarlanepartners.com/
http://www.marriott.com/
http://www.aegworldwide.com/

[LAMetroGuy]

From bogdowntown:

It's official

[DJM19]

[colemonkee]

Are they hanging a chandelier in that picture?

I'll change the front page later tonight when I get home.

[LongBeachUrbanist]

NICE!!!!

[colemonkee]

Ritz Carlton tower updated to under construction on the first page.

[Sol_Invictus]

It's thrilling to have some new high rises in L.A. Hopefully the Ritz will help jumpstart a high-rise boom in downtown L.A. The proposed buildings of Park 5th, Maguire Office Tower, and especially 1027 Wilshire (my favorite so far) look hot.

[BrandonJXN]

I just hope that Park Tower comes through. I love the design.

Any news on Concerto would be top tier.

[funhaus]

Originally Posted by colemonkee

Grand Towers
44 stories - residential
? stories - residential
? stories - residential


(Photo credit: http://www.keatingkhang.com)

Notice of public hearing just went out on the 1150 S. Grand Ave. project (between Grand Lofts and 12th Street). The hearing is June 27th, and the project description is as follows:

- Construction of a new 43-story residential tower and accompanying parking structre with commercial/retail spaces on the ground floor of both structures.
- 374 residential condominiums and 2 commercial condominiums consisting of approximately 17,500 sf of ground floor retail uses
- 857 parking spaces
- 70,143 net sf site

The applicant (Merco Group - Southpark) is seeking a vesting tentative tract map for a merger and resubdivision into 7 lots (2 master and 5 airspace), as well as a zone variance to allow a floor area ratio of 6.94:1 in lieu of the permitted 6:1 FAR.

Also on the agenda, a site plan review and approval of a haul route.

[edluva]

Originally Posted by bjornson

One of edluva's favorite projects!

hey, i'm all for the highrise itself, it's beautiful - i just think all that acreage (the grove, er, i mean la live), palmer, and whatever other platforms which are sure to be built throughout the rest of "south park" is a tremendous waste of soon-to-be-prime real estate. don't confuse me with about half the califorum people who are desperate enough to take any shitty proposal that comes dt's way, just becuase they're used to seeing shit throughout la doesn't mean i'm desperate. but then again, second-rate is good enough for a second-rate world-city!!!! right bjornson?

[Quixote]

^I share the exact same sentiments.

I've noticed that there are several forumers here who have that attitude of, "Just build it...whatever it is!" While I do think that any sort of project for Downtown at this point is welcome, it's not to say that quality should be disregarded.

LA Live is the main driving force behind Downtown LA's revitalization; it's crucial to Downtown's future. So I must say, we either take it or leave it. We should be thankful that there's even a project of LA Live's magnitude for Downtown that has already garnered such publicity. Seeing how much of an effect the mere concept and talk of LA Live has had on Downtown's image, I say that we take it with open arms.

[LongBeachUrbanist]

A city that's successful is a city held to high standards. L.A. needs to become a bit more picky about the projects it allows, even if that means learning to have some patience.

[fridayinla]

I agree with you guys that 2nd-rate projects are no good for Los Angeles. However, I think most forumers here don't have that "just build anything" mentality. In fact, I often read comments posted here that are very critical of building designs and projects overall. I think should give ourselves more credit. We all know what we want to see in our neighborhoods, and we're all opinionated people. Since we have no control over what's going to be built, at least we can be excited about another surface lot or dead-zone biting the dust! I think that's why we see enthusiasm sometimes for less-than-stellar projects.