Downtown Streetcar Update: Residents Will Vote on Tax…

So far the Downtown Streetcar project has secured $11 million and is seeking $50 million from the federal government.  The remaining $64 million will be voted on in an upcoming November mail-in ballot, that will determine if tax payers are going to be picking up the tab.

If the voters pass the assessment, business owners would be taxed based on their properties proximity to the streetcar line, as well as their parcel size.  Taxes are expected to be $.45 cents a square foot for properties located along the streetcar route, $.32 cents for properties one to two blocks away, and $.16 cents for 3 blocks away.  Curbed LA shows an example of the tax,  “…At the likely bond rate of 5 percent, a 10,000 square foot parcel directly on the streetcar line would pay $4,940 a year. That size property one to two blocks away would pay $3,460 and $1,730 if located three blocks away.”  Condo owners would be taxed based on a different schedule.

The streetcar route will travel from LA Live, up Figueroa, across Seventh, north on Hill, east on First, south on Broadway; then west on Eleventh and back to LA Live. Due to the fact that public properties can’t be taxed, along with other budget issues, officials have decided to cut out the portion of the streetcar route that would bring riders to Walt Disney Concert Hall and the Music Center.

By establishing a Streetcar in other cities such as Portland and Seattle, locals communities have seen an increase in development and investment around the streetcars path. Many downtown investors and developers have been eyeing parcels that may benefit from the proposed streetcar, however, we will have to wait to see what the voters say in November to get any sort of confirmation.

Advertisements

New 65,000sf South Park Hotel Renderings…

Located on a small 7,500 square foot in-fill lot, next door to the Luma building, and which was expected to be turned into a city park after being used as a drug den for dealers over the past several years; is a new hotel in the works. The building is expected to be 65,000 square feet, and contain anywhere between 40 and 60 rooms, according to the developer, who bought the site for $2.1 million in 2011. The property is located at 1130 S Hope Street.

Below are a few renderings recently released for the project… Architect is LA-based XTEN Architecture.

Current Building:
       

New Farmers Field Stadium Video…

Here’s a glimpse into what Farmers Field Stadium will be like on game day… video was created by stadium architect Gensler, Convention Center hall architect Populous, Gilbert Lindsay designer Melendrez, and parking structure architects HNA Pacific.

AEG is now going through its public comment period on its draft environmental impact report.

Champion Real Estate Buys Second Hollywood Parcel for Mixed-Use Development…

Globe St. reports that Champion Real Estate Cohas purchased the 1.14-acre commercial parking lot at 1717 Cherokee and 1718 Las Palmas pictured above for an estimated $10 Million in an all-cash transaction. UPDATE: Champion Paid $9.2M for the site, which is actually 1.1 Acres, meaning a price tag of approximately $192 per sq ft – according to a close source) This acquisition comes almost a year to the day after the firm’s March 2011 $20 Million purchase of a 2.76-acre, 5-building, adjacent redevelopment site spanning the Selma Ave facing side of the block between Las Palmas Ave and Highland Ave. A rendering of the proposed mixed-use development for that site is pictured below. (See Champion’s description of the project here, click on “Projects” and then on the star icon just to the left of the word “Glendale” on the map)


As for the new purchase, Globe St. reports that the company will continue to operate the parcel as a commercial parking lot while entitling the land for another mixed-use project. With the lot currently kicking of a 5% ROI, Champion can afford to be patient with its plans for the new development. However, Globe St. quotes Champion as saying, “Long term, as the transformation of Hollywood continues, we believe the property will be perfectly suited for a mixed-use development that will include public parking, residential, retail and possibly a hospitality component.”  The Globe St. article goes on to explain, “Champion could not elaborate on the mixed-use project until the City Council approves the community plan update, which will dictate what the developer can build, but he does tell GlobeSt.com that the price in mind for the mixed-use project at this point is around $50 million.”

Champion Acquires Parking Lot With $50M Plans (GlobeSt.)

Image Via Champion Real Estate Companies

LA Downtown News Releases Updated Info On 70 Downtown Projects…

The Los Angeles Downtown News has just released their updated report with the latest information on 70 downtown Los Angeles real estate projects.  As the article mentions, the recovery appears to be underway in downtown, as many stalled projects are moving forward or have recently opened, and new projects have been announced.

Click here to view article

Photo: Developer Linear City plans to break ground in April on a renovation and residential conversion of the former Metropolitan Water District headquarters building at 1111 Sunset Blvd

Bundy Village Goes to Hudson Pacific For $88.5 Million…

A close source tells us that it looks like Bundy Village will go to highest bidder, Hudson Pacific for $88.5 million.  Sale at the northwest corner of Olympic & Bundy includes 11.5 acres and an existing 50’s bow truss building.

The site has quite the history; being approved in 2010 for a high-density senior housing and medical plaza development, and then appealed and overturned in August 2011, after an immense amount of community opposition (more info on history of site here)

The “Best & Final” bids came in from:

  •   Hudson Pacific
  •   Mar ( allan mck) and Alecta
  •   McCarthy Cook and Northwood

Earlier bidders included,

  •   David Jordan ( ex hines ) and Invesco
  •   Jeff Worthe and Shorenstein
 (Map: Fight Bundy Village website) 

(Old Rendering)

UPDATE: Major South Broadway Theater Purchased – Going ACE Hotel…

UPDATE 1/23/2012:  Councilmember Jose Huizar announced today that the ACE Hoel chain has indeed purchased the United Artist Theatre, and has announced plans to redevelop the 13 floors into 180-hotel rooms, as well as add a pool, restaurant, bar and reactivation of the historic theater with approximately 1600 seats.  The press release states,  The Ace Hotel property falls within the boundaries of the L.A. Fashion Business Improvement District, which provides clean and safe services, as well as marketing and economic development support for the area. 

(Original Article: Oct 24, 2011)

The United Artists Theatre on South Broadway in Downtown Los Angeles has been purchased for $11 million (approx $117 psf), after being on the market since 2009 with an initial asking price of $15 million.  The building was built-in 1927 and according to the Loopnet listing, contains 73,783 sf of office space, above a 2,214 seat theater.

The buyer, Greenfield Partners is a real estate investment company out of Norwalk, CT, who has joint ventured on hotel acquisitions in the past and according to BrighhamYen, may possibly have plans for a hotel venture on this building.

United Artists Theatre is one of 12 main theaters along the Broadway Theater District, and its redevelopment would serve as a significant stimulus for the south Broadway area as well as be a big accomplishment for the Bringing Back Broadway initiative.  The proposed streetcar, which would run along Broadway and throughout the rest of the central city, may also find the new owners to be  a strong supporter and source of funding, as it would be in their best interest to have a streetcar run outside their building.