LOS ANGELES | Downtown Project Rundown 6.0

[DTLA_Drew]

Originally Posted by craigs

...noted that downtown condos are selling well...

I would clarify that by saying that higher end condos might be selling well, but smaller, older condos, like mine near Skid Row take months and months to sell.

[craigs]

Originally Posted by DTLA_Drew

I would clarify that by saying that higher end condos might be selling well, but smaller, older condos, like mine near Skid Row take months and months to sell.

That's not surprising. Fortunately, most downtown homes aren't Skid Row-adjacent.

[citywatch]

• Video Link

Likely bidders for the property include large institutional investors such as Blackstone Inc. and BlackRock, and cash-rich overseas sovereign wealth funds from the Middle East, Asia and Europe, property broker Mark Tarczynski said. “I think there’s a broad range of buyers,” he said, “but the pool of buyers is small because of the size of the project.”

An April appraisal by Colliers submitted in a bankruptcy case involving the project estimated the as-is market value at nearly $434 million, Bloomberg said. Colliers also projected a cost of $865 million to complete the buildings, which are 60% finished.

While some real estate observers have speculated that it might make sense to raze the towers to make way for a different development, Tarczynski predicts that the next owner will finish the existing project. “It’s about two-thirds of the way done, with about $1.2 billion already invested in it,” he said. “Why would you tear down a perfectly good project? It’s unimaginable.”

The brokerage team expects to distribute financial information and other facts about the project to qualified buyers early next month and call for offers by the end of July, Tarczynski said. “We hope to be in escrow by October.”

.

[badrunner]

Originally Posted by wisheye

https://commercialobserver.com/2024/...wers-for-sale/

Oceanwide Plaza is going on sale. Hopefully something comes through quickly. The latest estimate to finish construction is ~865M$, which is less than I would've thought.

The new owners will probably sit on it for years until interest rates come down

[LAsam]

The ULA tax on a $434MM sale would be $23.9MM... wonder how that gets paid.

[craigs]

Originally Posted by badrunner

The new owners will probably sit on it for years until interest rates come down

I hope not. I think it's fair to say that this should be completed by the '28 Olympics.

[badrunner]

Originally Posted by craigs

I hope not. I think it's fair to say that this should be completed by the '28 Olympics.

Yeah that's still four years away so there's a good chance it gets completed by then. Physically it can be done in a few months but borrowing costs remain the biggest hurdle as with any other project. I'm just tempering expectations.

[scania]

There are two towers mentioned on urbanize.la that are located at 11th and Olive. It’s by Mack Real Estate. I don’t know if anyone has information on it…that site requires an account.

[badrunner]

Originally Posted by scania

There are two towers mentioned on urbanize.la that are located at 11th and Olive. It’s by Mack Real Estate. I don’t know if anyone has information on it…that site requires an account.

Not much to report except that it's "moving forward."

https://la.urbanize.city/post/heres-...and-olive-dtla

After four years of quiet, Mack Real Estate Development is once again moving forward with plans for a pair of high-rise apartment towers at the intersection of 11th and Olive Streets in Downtown Los Angeles.

This week, the Los Angeles Department of City Planning published a sustainable communities environmental assessment for the two proposed buildings, both of which would replace surface parking lots with more than 1,200 homes.

Site 2, the smaller of the two towers, would rise at 1105-1123 S. Olive Street and consist of a 51-story building featuring 536 studio, one-, two-, and three-bedroom homes above 4,178 square feet of ground-floor commercial space. The 603-foot-tall building would also include parking for 581 vehicles in a four-level podium and six subterranean levels.

Across the street at 1100-1130 S. Olive Street, Site 3 would yield a taller 60-story tower 713 additional residential units above 11,277 square feet of ground-floor commercial space, with parking for 764 vehicles located in a four-level podium with six below-grade levels. At 678 feet in height, it would rank as the 12th tallest building in the City of Los Angeles if completed today.

...

[Zapatan]

As exciting as that is, I can't count how many times LA projects "moved forward" only for nothing to happen.

Fingers crossed though. I'll remain cautiously optimistic.

[citywatch]

• Video Link


"Interest far greater than we expected".

"we have multiple offers significantly higher than that".

"I want our city to come off in its best light in 2028".

[craigs]

For those who prefer text to YouTube videos, here are some interesting things included on the NBC LA website regarding the sale of Oceanwide:

“We have multiple offers significantly higher than that and it could possibly trade for more than a billion dollars,” Tischer said. “All bidders will be invited, and I have no doubt that we will have interest from typical developers all the way through and including sovereign wealth funds from different countries.”

“Our process is a methodical and fair process,” Tischer said. “A lot of the process will be qualifying the bidders, making sure they have the resources to finish it because what we don’t want is another false start.”

The Colliers team believes a new buyer will be announced and work will re-start by the end of the year.

They hope the new owner will complete the project in time for the 2028 Olympics.

“I want our city to come off in our best light in 2028, and this is the lynch pin to having that happen,” Tarczynski said. “We live here, and it’s important to us that it gets into the right hands and that it gets finished.”

[Easy]

Originally Posted by craigs

That's not surprising. Fortunately, most downtown homes aren't Skid Row-adjacent.

Most apartments aren't but maybe more condos than you think. I think that a lot of homes were bought 10-15 years ago on Main, Spring, in the Toy District and in Little Tokyo when skid row was shrinking, but it became bigger than ever after court rulings.

[hughfb3]

Originally Posted by Zapatan

As exciting as that is, I can't count how many times LA projects "moved forward" only for nothing to happen.

Fingers crossed though. I'll remain cautiously optimistic.

Normally I would be cautiously optimistic as well except for the fact that this developer; Mack Urban Real Estate, purchased all 6 of these lots together and created a master plan which has already completed the 36 story AVEN apartment tower next door and the 362 unit WREN mid rise apartments a block south. The Aven has leased its apartments well and the retail at the bottom is fully leased out. The open-to-the-public pocket park they built adjacent to the tower is clutch for this area and by design is adjacent to their proposed 50 story tower. This developer knows the market and has experience in building here. These proposed towers only strengthen their position of the existing developments.

[scania]

Originally Posted by hughfb3

Normally I would be cautiously optimistic as well, except for the fact that this developer; Mack Urban Real Estate, purchased all 6 of these lots together and created a master plan which has already completed the 36 story AVEN apartment tower next door and the 362 unit WREN mid rise apartments a block south. The Aven has leased its apartments well and the retail at the bottom is fully leased out. The open-to-the-public pocket park they built adjacent to the tower is also clutch for this area and also happens to be adjacent to their 50 story proposed tower. This developer knows the market and has experience in building here. These new developments only strengthen their position of the existing developments.

This is very true. If any of you get a chance to walk this area…it’s a drastic difference to the rest of DTLA….other than maybe near the Disney Hall. Though that area has more of a tourist feeling.

[citywatch]

Onni proj at Olympic & Hill St...

• Video Link

[Zapatan]

Originally Posted by hughfb3

Normally I would be cautiously optimistic as well except for the fact that this developer; Mack Urban Real Estate, purchased all 6 of these lots together and created a master plan which has already completed the 36 story AVEN apartment tower next door and the 362 unit WREN mid rise apartments a block south. The Aven has leased its apartments well and the retail at the bottom is fully leased out. The open-to-the-public pocket park they built adjacent to the tower is clutch for this area and by design is adjacent to their proposed 50 story tower. This developer knows the market and has experience in building here. These proposed towers only strengthen their position of the existing developments.

That's cool, good to know. LA could definitely use more 6-700 foot buildings downtown. I don't see a timeframe mentioned though.

That would be close to the planned 1045 Olive (Crescent Height's 800 footer). That'd be amazing if they could all rise together.

[scania]

Originally Posted by Zapatan

That's cool, good to know. LA could definitely use more 6-700 foot buildings downtown. I don't see a timeframe mentioned though.

That would be close to the planned 1045 Olive (Crescent Height's 800 footer). That'd be amazing if they could all rise together.

I didn't think about that...that would be really cool.

[LA21st]

Originally Posted by scania

This is very true. If any of you get a chance to walk this area…it’s a drastic difference to the rest of DTLA….other than maybe near the Disney Hall. Though that area has more of a tourist feeling.

South Park feels like the South Loop in Chicago to me. Not as many towers of course but the feel is really similar.

[badrunner]

Originally Posted by craigs

For those who prefer text to YouTube videos, here are some interesting things included on the NBC LA website regarding the sale of Oceanwide:

“We have multiple offers significantly higher than that and it could possibly trade for more than a billion dollars,” Tischer said. “All bidders will be invited, and I have no doubt that we will have interest from typical developers all the way through and including sovereign wealth funds from different countries.”

“Our process is a methodical and fair process,” Tischer said. “A lot of the process will be qualifying the bidders, making sure they have the resources to finish it because what we don’t want is another false start.”

The Colliers team believes a new buyer will be announced and work will re-start by the end of the year.

They hope the new owner will complete the project in time for the 2028 Olympics.

“I want our city to come off in our best light in 2028, and this is the lynch pin to having that happen,” Tarczynski said. “We live here, and it’s important to us that it gets into the right hands and that it gets finished.”

I expect no less than five youtube videos of local news reports on the subject.

Anyway, hopefully some deep-pocketed developer buys the property and finishes it in a timely manner.