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:
       

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

Farmers Field Stadium: Renderings Released For LA Convention Center Replacement …

In order for AEG to build their Farmers Field Stadium, they must demolish the West Hall of the LA Convention Center; and according to their agreement with the city, they must replace the demolished portion.  Yesterday AEG and Architect Populous, presented designs to the Ad Hoc city committee for the 20,000 square foot Convention Center wing, which will replace the West Hall.  The new facility would rise one story above Pico Blvd; connecting the existing South Hall to the proposed stadium, making the entire Convention Center one congruent building (Current Convention Center is split between two separate spaces). Pouria Abbassi, General Manager of the LA Convention Center said, “This is 21st century design…This places us in the top-tier to be able to capture those electronic shows (referring to E3, a large & popular gaming convention)…E3’s booking agents prefer to host in one large space”, he says.

While AEG is making progress on their design plans, the overall goal of building a downtown stadium is dependent on them securing an NFL team.

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.

Downtown Development Outlook 2012…

2012 should be a year of action for Downtown Los Angeles real estate; at least, we are hoping. We do know of a few key projects that should be delivered this year, including a 104,000sf Target, located at the revamped 7th & Fig retail center (opening this Fall), and the highly anticipated Grand Ave Civic Park (opening this Summer) which will cover 12 acres between Grand Ave and Spring Street, and will include a dog run, walking paths, open space and a large event lawn (Construction site pictured left)…LA’s version of Central Park?

Other Downtown projects which should make headway this year include Homer Williams Marriott Hotel development; expected to break ground in late 2012, the Broad Museum, which is under construction, and the 19-story Grand Ave apartment building, which needs to break ground by October 2012 in order to fulfill its agreement with the Grand Avenue Authority committee. The Wilshire Grand Redevelopment, which just closed its doors in December, is planning to start demolition in August for its first phase 45-story hotel and condominium tower, and of course we are hoping AEG, the developers of Farmers Field Stadium, makes progress on their plans for an NFL stadium and convention center – currently in negotiations with NFL to secure a team.

Then there are the projects that haven’t officially been announced, but are rumored to be in the planning stages and could make a presence in 12′, including the United Artist Theater, which is expected to become an Ace Hotel, the Trinity Auditorium and Hotel Clark renovations, both of which are said to be going Hotels, under the management of King & Grove Hotels, and several South Park parking lots with potential plans for hotels, multifamily apartment buildings and perhaps even condominiums.

Also, don’t forget about the Brockman building, which has been held up in escrow over title issues ever since selecting a winning bidder in August. Once title clear up, we expect those units to be hitting the market, either as high-end rental or condos.

More information can be found at: Downtown Los Angeles News

Hotel Clark To Be King & Grove Hotel…


As reported by Brigham Yen, the Hotel Clark at 4th & Hill Street in Downtowns Historic Core; which has sat empty for decades, is going to be open for business once again, under the flagship of King and Grove. No information has been released as to the opening date, but the news is sure to spark excitement among downtown enthusiast, as the vacant building has stifled economic growth for the block; within a neighborhood which has undergone significant revitalization over the past 10 years.

The Chetrit Group, who is the owner of the Hotel Clark, and several other empty and obsolete buildings in the central core, including the Giannini Building (649 S Olive), the Embassy Auditorium (839 S Grand) and the 611 W 6th Street tower, is a billionaire family out of NYC, mainly run by two brothers, Joseph and Jocob Chetrit. The family made news recently over rumors that the brothers were parting ways, which led to speculation about whether there would be a major restructuring among the family’s assets, and that perhaps some of their downtown LA buildings would become available for sale. We have spoken to a source close to the family in NYC, who said the Chetrit’s may consider selling 611 W 6th, but that offers would have to come in at $250 psf to get their attention.

While Chetrits downtown holdings offer many challenges for redevelopment, such as structural issues due to the 94′ earthquake that was noted to have done significant damage to the Embassy Auditorium; the buildings are in the heart of downtowns most revitalized areas and would contribute greatly to the overall resurgence of downtown if renovated.