15 24 downtown development.qxp 5/22/2014 4:30 PM Page 15 ... · Downtown Development May 26, 2014 • An Advertising Supplement to the Los Angeles Business Journal This special advertising

DowntownDevelopment

May 26, 2014 • An Advertising Supplement to the Los Angeles Business Journal

This special advertising supplement did not involve the reporting or editing staff of the Los Angeles Business Journal.

DOWNTOWN Los Angeles has been undergo-ing a metamorphosis as billions of dollarsin private investment have been fueling a

major economic revitalization.In recent years, the region has seen an explo-

sion of residential building that has made down-town a vibrant 24/7 center of activity. Two private-ly funded billion dollar developments have playeda large role in helping to reinvent the area. LALIVE is a vast complex incorporating major enter-tainment venues, a 1,000-room convention hotel

along with luxury residences, restaurants, andclubs. Meanwhile, Grand Avenue, on Bunker Hill,incorporates 400,000 square feet of retail space, a16-acre park, residential units, and a luxury hotel.Plus, the Frank Gehry-designed Disney ConcertHall, the Music Center, and new Nokia Theatremake Central Los Angeles the cultural and eventscenter of the region.

Located just three miles south of downtown, theUniversity of Southern California is one of theworld’s leading private research institutions andconsistently enrolls more international studentsthan any other U.S. university. USC, the largest pri-vate employer in the City of Los Angeles, and theCounty of Los Angeles are planning a world-classbiomedical research park adjacent to the USC’sHealth Science Campus located east of Downtown.

Doing Business Downtown

Beyond the tall towers, Downtown offers sever-al vibrant areas of industrial activity including theFlower and Produce Districts, important hubs for

the fresh flower and produce trades; the FashionDistrict, where many top designer brand clothessuch as American Apparel and Forever 21 are man-ufactured; the Toy District, a key design and distri-bution center for toys; and the Jewelry District,the West Coast center for production, wholesaling,and retailing of precious metals, gems, and stones.

Local Government & Business

As the economic and financial hub of the WestCoast, the Central Business District hosts theregion’s top professional services firms includingbanking, law, accounting, insurance, architecture,engineering, and consulting. Businesses in thisregion are served by organizations such as theCentral City Association.

CCA, in conjunction with the DowntownCenter Business Improvement District (DCBID), has

led the Downtown Los Angeles renaissance since itsinception, advocating for legislative initiatives thatpromote development and investment in the citycenter. CCA’s advocacy in favor of the adaptivereuse of Downtown’s historic buildings sparked therevitalization of our city center. The result has beenthe creation of thousands of new housing units anda tripling of Downtown’s population in the pastdecade. Together, CCA and the DCBID have suc-cessfully transformed Downtown’s once-forgottenstreets into a 24-hour neighborhood that boasts topcultural and entertainment destinations, culinaryhotspots and a dynamic residential community.

More, perhaps than ever before, Downtown LAis a fabulous place to work and live!

Information for this article was provided by the LosAngeles County Economic Development Corporation.

It’s Great to Work – and Live– in Downtown Los Angeles

A Closer Look at the Downtown Boom

WHY DOWNTOWN?

• Downtown L.A. is home to the largest concen-

tration of government offices and employment

• It is the economic and financial hub of

the West Coast

• It is home to the Fashion, Toy, Jewelry, Flower,

and Produce districts where an a wealth of

economic activity takes place

• It is the ideal location for those who work

regularly with public agencies

• Cultural and tourist attractions abound

Sponsored by:

15_24_downtown_development.qxp 5/22/2014 4:30 PM Page 15

16 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL MAY 26, 2014

◆◆ Downtown LA is firing on all cylindersand the speed of transformation is incredi-ble. Lew, give us your take on what’s drivingall of the interest in Downtown today.

HORNE: All over the world there’s been an urbanshift, a surge of residents moving to the core ofmajor cities. This is occurring in all major cities, butit’s happening faster in downtown LA than any-where else. And what better place to invest? This isone of the most recognized cities in the world, it’sthe safest place on the earth to invest right now, andthere’s a fundamental shift happening in all aspectsof the real estate market in Downtown Los Angeles.

◆◆ CBRE has gotten a lot of attention for itsnew global corporate headquarters inDowntown LA. Why did the company chooseto locate here?

HORNE: CBRE truly believes in downtown LA – we’verelocated our global corporate headquarters to theheart of the city. We’ve invested here and our peopleare actively guiding the city into the next millenni-um. It’s incredible to see how every aspect of themarket is connected right now and moving in thesame direction – it’s not just one sector driving thistransformation. Today, residential, retail, office, hoteland industrial are all integrated and driving theinvestment surge here. We’re thrilled to be part of it.

◆◆ Phillip, you advise clients in DowntownLA on ground-up developments as well as

conversions, especially regarding creativespace. How is the Downtown core beingdefined today and what are the trends you’reseeing in this segment of the market?

SAMPLE: The “historic core” is defined geographical-ly by Second Street at the northern end, to 11th

Street at the southern end, and from Hill Street toLos Angeles St. The buildings in this area are typical-ly 100-years old, irreplaceable properties marked byincredible, historic architecture. There’s a tremen-dous amount of redevelopment happening – thanksto the adaptive re-use ordinance, these buildings arenow not only considered relevant by the investmentcommunity, but they are also in high demand.Investors are actively competing for them. Just lookacross the downtown skyline, you’ll see more than adozen cranes in the air which no one would havepredicted ten years ago. Another undeniable fact isthat the buyer pool is no longer primarily local. Inthe last year, we’ve seen a significant increase ofbuyers coming from outside our market. I would sayhalf are East Coast based, something that we’venever seen before. We’re also seeing increased for-eign capital for larger ground-up projects, especiallyfrom China.

◆◆ You recently announced a buyer for thehistoric Broadway Trade Center, and theredevelopment of the project is being talkedabout as a game changer for Downtown. Canyou tell us a little about that and what wemight see happen there?

SAMPLE: In the next few months we’ll announcedetails about a well-known company moving toDowntown that will occupy 400,000 square feet.This is significant as it will prove that Downtown isnow competing head-to-head with Westside creativemarkets, which has never been the case before. Thismove will single-handedly shift the downtown mar-ket fundamentals. This major tenant will bring3,500 employees alone and these employees willneed to live somewhere. We’re seeing a cycle wherethe office sector is driving the residential market andthe residential market is driving the office sector.There are 4,542 residential units under constructionand a total of 13,966 planned, so the influx of high-ly-educated workers will continue to fuel the officeand residential market for years to come.

◆◆ That will be a very interesting project towatch. Can you give us some insight onwhere values are headed?

SAMPLE: In the last twelve months we’ve seen valuesjump up to as much as 40% in select places. Today,creative office tenants are looking at paying as much,if not more, than a high-rise tenant and buyers arenow viewing creative spaces as long-term, stabilizedassets and they believe their investments will contin-ue to grow. We think values will go up another $50per square foot in the next nine months - that’s ontop of the increases we already experienced in somerecent sales. These are unprecedented levels, and thesurge is largely due to the short supply and highdemand of office space, especially creative.

Downtown Development: What’s Driving the Boom ... and What’s NextA ROUNDTABLE DISCUSSION

DOWNTOWN DEVELOPMENT

The Los Angeles Business Journal sat down withLewis C. Horne, President of the Greater LosAngeles and Orange County Region for CBREand Chairman of the Los Angeles EconomicDevelopment Council (LAEDC), to talk aboutwhat’s driving the Downtown LA market todayand what the future looks like for this boomingmarket. He was joined by several CBREDowntown LA market experts who shared theirinsights into the market including Downtowndevelopment expert Phillip Sample; retail expertsRichard Rizika and Scott Kaplan; multi-familyexpert Brad McCarthy; office leasing expert JohnZanetos; and industrial expert Brandon Gill.

Lewis C. Horne

President, Greater Los Angeles

and Orange County Region

Phillip Sample

Senior Vice President

Richard Rizika

Executive Vice President

Scott Kaplan


Brad Mccarthy

First Vice President

John Zanetos


Brandon Gill

First Vice President

Continued on page 18


MAY 26, 2014 AN ADVERTISING SUPPLEMENT TO THE LOS ANGELES BUSINESS JOURNAL 17

www.cbre.com/losangelesdt

CBRE KNOWS DOWNTOWN LA

For more information, please contact:

Lewis C. HornePresident, Greater Los Angeles and Orange County +1 213 613 3305

All over the world, there’s an urban shift underway. There’s

a surge of residents moving to the core of major cities, and

it’s happening in Downtown LA faster than anywhere else.

We believe in Downtown LA and we’re invested here. We’ve

relocated our global corporate headquarters to the heart

of the city, and through our work advising developers,

investors and tenants on the transformative dynamics of this

fast-changing market, our real estate experts are helping to

shape the future of Downtown LA.



◆◆ John, you focus on leasing high-rise build-ing and creative office space in the core ofdowntown LA as well as the Arts District.What kind of tenant demand are you seeingfor these distinctly different types of officespace in Downtown LA?

ZANETOS: Working both the high-rise market andthe creative market, I have a wide lens when itcomes to tenant activity in Downtown LA. OnWednesday, you might see me wearing a suit as Itour clients through a high-rise building in theFinancial District, and on Thursday, I’ll be walkingthe Arts District with clients in an open collar shirtdiscussing creative office opportunities. There’s defi-nitely a difference in the tenant base for these prop-erties, but there’s commonality when it comes torenewed interest in Downtown – tenants of allshapes and sizes want to be here.

◆◆ Where is the tenant activity is coming from?

ZANETOS: The technology, entertainment and designsectors — which I refer to as “TED” – have exponen-tially grown recently. The statistics are already blow-ing us away, especially in the fashion sector which isalready huge and continuing to grow. On the heelsof last year’s Splendid/Ella Moss 80,000 square footlease at Alameda Square, the California FashionAssociation and CIT just released the FashionIndustry Profile and 2014 Outlook where Los Angeleswas named as the number one city for fashion jobsin the United States, superseding New York for thefirst time. This is another indicator that DowntownLA is truly emerging as a hub for “TED” companies,most of which prefer creative office spaces.

◆◆ What’s behind this increasing demand fromtech, entertainment and design companies?

ZANETOS: These tenants are growing for a number ofreasons, the first of which is that they’re attracted tothe tremendous residential and retail influx.Traditionally, the office sector has led the recoveryof major downtown markets, but in Downtown LA,the office sector is actually the last chapter of thebook to be written.

◆◆ That’s an interesting observation. How areresidential and retail growth changing howoffice tenants view this market today?

ZANETOS: Lifestyle – amenities, entertainment and resi-dential – are leading the urbanization of DowntownLA, and as more and more people want to beDowntown, we’re seeing companies looking to tapinto the prime talent pool that is now here.Downtown Los Angeles has some of the best schoolsin the United States – USC’s film school, architectureschool, Fashion Institute of Design and Merchandising(FIDM), Otis College of Art and Design, and theSouthern California Institute of Architecture (SCI-Arc)are in LA, which means we have a highly-educatedpool of talent here. Recent studies have shown thatthe average resident of downtown LA is in the mid-30’s, is making a median income of $98,000 (well-above the California average), is highly educated andis in a prime position in his or her career. These demo-graphics are attractive for businesses looking to grow.

◆◆ How are investors and landlords respond-ing to the increasing interest from tenantsin Downtown LA?

ZANETOS: Our client, CIM, just acquired 350 GrandAve – formerly known as Two Cal Plaza – which isone of the tallest high-rise buildings in downtown.What’s interesting is that CIM’s investment roots arein retail and Hollywood, not in office buildings. Theyacquired it with the intent to use their expertise toreposition the asset to attract traditional and creativeoffice tenants. This is fresh capital coming into LosAngeles with a fresh perspective, and we’ll soon seethe impact their project will have on the market.

◆◆ Brad, John made some interesting obser-vations about the role residential demandhas played and continues to play in the evo-lution of Downtown. You work with owners,developers and capital to move multifamilyprojects forward. What are the trends you’reseeing today in this area?

MCCARTHY: Urbanization is the primary trend drivingthe market. I think this is driven in large part byMillennials wanting to live in urban metro areas withwalkable amenities and an interesting social environ-ment. A good percentage of those currently residing inDowntown LA work here, but there’s also a large per-centage that actually work outside of the core andchoose to live here for the experience. More and moreof these residents don’t even own a car and instead,are either walking to their jobs within Downtown, ortaking advantage of the public transportation systemto get to work in other parts of the city.

◆◆ Over the years there has been a big focus oncondos in Downtown, but now it seems likethere is an increasing demand for apartments.

MCCARTHY: We’re seeing significant demand for apart-ments. It’s predominately a renters market; we’re see-ing an empowerment of the renter because it givesflexibility. If you buy you’re locked in for a given peri-od of time, but if you rent you have the power ofchoice. And renters are choosing very high-end, high-ly-finished apartments – they want features likeframeless glass showers, relaxing baths, marble coun-tertops, pools and lounges with Wi-Fi, and developersare delivering that type of product today. Not only doresidents want a place which is aesthetically pleasingbut they also want convenience. Residents todaywant to be connected to what is important to them.For example, look at the apartment complex underconstruction on 8th & Grand Ave. that I recently soldon behalf of Astani Enterprises to Carmel Partners for$63 million. This property will include 700 apartmentunits with a retail component on the first floor thatwill be home to a Whole Foods Market. Whole Foodsis the brand in grocery and they want to be in the “it”place in the market. Their move is a huge vote ofconfidence in this market, and something that will bea significant draw for tenants. This development islocated in the urban core, the heart of South Parkdowntown LA, where residents can walk one block tothe metro or to the Financial District or to the cornerwhere they’ll find dozens of award-winning restau-rants on 7th. It’s literally a five minute walk to StaplesCenter and LA Live, so the convenience can’t be beat.

◆◆ You were involved in the high-profile saleof the Metropolis site earlier this year. Doyou view that as a market changer forDowntown?

MCCARTHY: Definitely. We sold this property onbehalf of IDS and CalSTRS to Greenland Group, aShanghai-based investor. Chinese investors havebeen very active in the resurgence of the residentialmarket here, and with a development cost of about$1 billion, this project – a large, mixed-use, high-risewith hotel, residential living, and retail components– will be transformational for Downtown LA. It’s aprime example of the attractiveness of Downtownfor foreign capital and their commitment to make amajor investment here.

◆◆ Can you share any other examples ofinteresting residential developments?

MCCARTHY: Another really interesting project is theG12 development in South Park on the corner of12th and Grand Ave, which is a 640-unit apart-ment development including about 30,000 squarefeet of retail at the bottom. I recently advisedAstani Enterprises in the sale to the WolffCompanies for $45 million. Five years ago, no onethought a project like this would develop in thisneighborhood, and now it’s considered a Class Alocation in a highly desirable area. As the northside of South Park progressed, demand pushed sev-eral blocks south to the area. There’s a high-risehotel planned across the street, it’s adjacent tothree of the highest-priced condominium towers inDowntown and there are plans for additional capi-tal projects in the neighborhood. This area hastransitioned from good to great in a very shortamount of time – it’s been fascinating to watchand to be part of.

◆◆ Where do you see pricing headed?

MCCARTHY: There has been a lot of talk over the lastseveral years about Downtown LA becoming a 24/7environment, but five to seven years ago the invest-ment community was taking a wait and seeapproach. Now it’s here – it’s a reality and investorswant in on it. Three to five years ago land was trad-ing at $300 per square foot and now it’s $550 to$600 per foot. It’s doubled in price in such a shorttime. There are still opportunities, but not as plenti-ful as before. I believe that within three to four moreyears, Downtown LA will feel like a mini-Manhattan, especially in the South Park area. Theskyline and the streets will change. Active andpedestrian-friendly streets will create the urban envi-ronment we want to see.

◆◆ Brandon, you advise sellers and buyers ofindustrial real estate. How is that sector capi-talizing on all of the growth in Downtown LA?

GILL: Industrial has definitely gotten in on the action.I find myself selling industrial properties for adaptivereuse and redevelopment projects – it’s a changingmarket. We’re not just transforming historical indus-trial buildings into typical industrial spaces, we’reconverting these buildings into residential lofts, cre-ative office, boutique hotels and all types of retail.


Continued from page 16

‘Today, residential,retail, office, hotel andindustrial are all inte-grated and driving theinvestment surge here.We’re thrilled to bepart of it.’LEWIS C. HORNE

‘The surge is largelydue to the shortsupply and highdemand of officespace, especiallycreative.’PHILLIP SAMPLE

‘There’s commonalitywhen it comes torenewed interest inDowntown – tenantsof all shapes and sizeswant to be here.’JOHN ZANETOS

‘Urbanization is the primarytrend driving the market... driven in large part byMillennials wanting to livein urban metro areaswith walkable amenitiesand an interestingsocial environment.’BRAD MCCARTHY


◆◆ Did you ever think you would seethis kind of activity in the city’score?

GILL: More than 20 years ago I was a stu-dent at USC and I remember when thisarea was only open 8am to 5pm, Mondaythrough Friday. Now downtown hasevolved to a 24/7 environment. Office,residential, and even retail industries arehelping to drive the change I’m seeing inthe industrial sector. For example, BonAppétit magazine named Alma inDowntown the “Best New Restaurant of2013” and the culinary world is sayingDowntown LA is where the new talentwants to lay roots. This is all contributingto why notable publications such as GQMagazine and the Wall Street Journal areidentifying Downtown LA as one of thehottest new cities in America. Peoplefrom all parts of greater Los Angeles arecoming here for dining and nightlife,which has made Downtown LA a desti-nation. The urban experience is presentand gaining tremendous momentumwith 1,710 residential units under con-struction or planned in the Arts District.In my opinion, Downtown LA is nowdefining Los Angeles, where before thoseunfamiliar with the area associatedHollywood, Santa Monica or Beverly Hills

as being Los Angeles. All of this may notseem like it mixes at first glance with theindustrial sector, but the sudden broadinterest in the area is why we’re needingto look at older buildings and decide howthey can best be transformed to higherand better uses.

◆◆ Can you give us an example ofan older industrial property that isbeing redeveloped for a new use?

GILL: The Ford Motor Factory is a greatexample. It’s a 300,542 square foot,multi-story industrial building that wasoriginally built to manufacture themodel-T and more recently, was a ware-house of toys for Imperial Toy. To illus-trate the transformation of the ArtsDistrict, in July 2008, CBRE leased theFord Motor Factory for $0.27 per squarefoot gross to American Apparel. Werecently sold the property to Shorenstein– a San Francisco based office investorthat is looking to generate approximately$2.50 per square foot, net rent for cre-ative office. Large noteworthy tenantsfrom industry types new to DowntownLA have already expressed interest inShorenstein’s future project.

◆◆ What can we expect to seemoving forward?

GILL: The industrial product in areas of

Downtown LA, like South Park and ArtsDistrict, have experienced a major trans-formation. Looking at the trends and themarket indicators, we can expect spikes inrents and a changing user base. When wefirst started marketing the Coca ColaBuilding for sale 18 months ago – whichis another multi-story industrial buildingthat will be converted to creative officeand retail – institutional capital was veryunsure about the Arts District. Today,because of the transactions that haveoccurred in the immediate surroundingarea, there is a new level of comfort in themarketplace for this location and type ofproduct. We now see institutional capitalaggressively coming into this market andpricing reflects this demand. The local

investors are now competing againstnational and international buyers andtheir capital. Buyers that have had successin other urban and/or creative marketslike New York, London, Chicago, Seattle,West LA and San Francisco, now seeDowntown LA as a good value and aplace they want to be.

◆◆ Can you describe the user basefor these projects?

GILL: The Downtown LA industrial marketwas historically made up of garment andfood related businesses, but now the userbase is changing. Tech, PR firms, entertain-ment companies, other creative industriesand eclectic retail are all looking at these

projects. We’re seeing new users and indus-tries considering Downtown LA that wereunimaginable five years ago.

◆◆ Retail is one of the most excitingaspects to the evolution ofDowntown LA. Scott, you work onretail, mixed-use ground-up devel-opments and adaptive re-use retailprojects nationally, and are veryactive in the Downtown LA marketlately. How does Downtown LAcompare to other major downtowncores from a retail perspective?

KAPLAN: I’ve worked in 27 states and can



‘The sudden broadinterest in the area iswhy we’re needing tolook at older buildingsand decide howthey can best betransformed to higherand better uses.’BRANDON GILL

Continued on page 20


see Downtown LA from a local perspective as well asfrom a broader perspective. One thing I’ve found to betrue anywhere you go: no retail, no people.

Downtown LA is following the gentrification of everymajor city. Our city is starting to remind me of Chicago,where I lived for 32 years. The movement starts withretail and entertainment pockets such as LA Live, Fig at7th, and The Bloc. Each district will have its own per-sonality from a retail point of view. For example, look atthe Broadway area, an urban area with gritty retailerslike Urban, ACNE and Ace Hotel. The retailers want tobe in authentic environments and choose their locationscarefully. This is validated by the fact that ACNE has sixselect locations in the world, and they chose Broadway.

◆◆ There are a number of high-profile retail proj-ects planned or in development. Can you sharean example of a project that you think will beparticularly transformative for the market?

KAPLAN: The Bloc, which currently is enclosed mall, is agreat example of what the future of retail looks like inDowntown LA. By opening it up, it becomes a living,breathing area. They’re being much more selective aboutwho they bring into the neighborhood so that they create acurated experience that suits its open-air, pedestrian-friendly,urban personality. They’re looking at local and nationalboutiques, artisanal retailers, unique restaurants – brandsand experiences that have more to offer the consumer.

◆◆ Richard, you have been very active in bringingnational retailers to Downtown LA, includingTarget, Smart & Final, and Chase Bank. What’sbeen the single most important factor that haschanged how retailers view Downtown LA?

RIZIKA: As a result of the global recession, manyplanned, for-sale residential projects in the Downtowncore became repurposed to apartments and as a by-prod-

uct, the mix of residents changed. Apartment dwellersare younger than we initially predicted – they are optingto rent rather than buy and they want more of a seven-day-a-week environment as opposed to just beingfocused on 9-5, Monday through Friday.

Restaurateurs that couldn’t afford or locate opportuni-ties on the Westside of LA were being enticed by land-lords in Downtown Los Angeles that could offer attractiveeconomic packages in unique buildings. While LA Livewas the first major retail development in Downtown, itwas primarily made up of restaurant and entertainmentuses. Brookfield’s Fig at 7th project is now providing amix of specialty retail and restaurants. The Bloc will fur-

ther provide a mix of restaurants, entertainment and spe-cialty retail. Downtown is evolving to a very unique andhip environment similar to the Meatpacking District inManhattan or South Beach in Miami.

The momentum is undeniable. In addition to H&M,Zara, Urban Outfitters and others that are opening storesin Downtown, we are working with many national andglobal retailers that are seeking opportunities through-out Downtown.

◆◆ Can you describe the atmosphere in Downtown?

RIZIKA: There’s been a return of vibrancy in LA.Downtown is home to multiple professional sports fran-chises, a sophisticated academic community, and recent-ly we’ve seen a celebration of cultural arts with theopening of new museums and unique architecture – allof this creates an environment where people want to beand stay. Interestingly, this is counter-intuitive to thetypical Southern California mindset of wanting to be atthe beach. The younger generation is shedding their carsto use mass transit systems, wanting to be green and livea sustainable lifestyle.

◆◆ What are your predictions for the future?

RIZIKA: More and more people are looking to live andwork Downtown. We’re going to see a lot more retaildevelop whether it be ground-up or adaptive re-use ofexisting buildings. A big change will be when luxuryretailers start hitting Downtown – while Downtown LosAngeles is now considered an emerging market, I wouldpredict that it will be considered a global high streetwithin the next five to ten years. Housing stock willchange and the market will offer more family-type hous-ing. New schools for kids will need to be built to accom-modate the growth in households. We’re seeing moreglobal interest and soon we’ll see more Asian visitors,brands, and residents.



Continued from page 19

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‘More peopleare looking atDowntown.We’re going tosee a lot moreretail developwhether it beground-up oradaptive re-useof existingstructures.’RICHARD RIZIKA

‘One thing I’vefound to be trueanywhere yougo: no retail,no people.Downtown L.A.is following thegentrification ofevery major city.’SCOTT KAPLAN



BERNARDS, a nationally ranked,award-winning commercialbuilder headquartered in Los

Angeles, has been selected to serveas general contractor for 12th &Olive, a 293-unit mixed-use projectlocated in Downtown Los Angeles’popular South Park district. This $54million project will break ground inlate May 2014 and is scheduled forcompletion mid-year 2016.

“South Park is one of the mostdesirable and active lifestyle districtsin Downtown Los Angeles,” said JeffM. Bernards, senior vice presidentand project executive, noting thatthe area encompasses an abundanceof attractive retail and entertain-ment amenities. The South Parkneighborhood includes attractionssuch as the LA Convention Center,“7th Street Restaurant Row,” theGrammy Museum, L.A. Live enter-tainment complex, and StaplesCenter – home to the Los AngelesLakers, Kings and Clippers.

“We are pleased to have beenselected to build this mixed-use resi-dential project, which will add retailamenities and increased vitality onthe street, aiding in the continuedtransformation of South Park to alively urban neighborhood and evo-lution of Downtown to a true 24-7market,” added Bernards.

12th & Olive is being developedby The Wolff Company anddesigned by Los Angeles-based TCAArchitects as a mixed-use, 7-storypodium building comprised of 293apartment homes and approximate-ly 17,300 square feet of ground floorretail, with 7,000 square feet ofamenity space for its residents,including 24-7 on-site valet andconcierge services.

With more than 2,600 urban resi-dential units currently under con-struction, mixed-use apartments andcondominium projects are a special-ty of Bernards. The firm recentlycompleted a $105 million, mixed-use project at the intersection ofWilshire Boulevard and La BreaAvenue in the mid-city section ofLos Angeles and is under way onOne Santa Fe, a $110 million, tran-sit-oriented mixed-use project in theDowntown Los Angeles Arts District.

Bernards, which celebrates its40th anniversary this year, is one ofthe most active construction firms inthe resurgence of SouthernCalifornia’s multifamily develop-ment and has increased its work-force by 10 percent over the pastyear and a half.

For more information visithttp://www.bernards.com/

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Tony SolomonVice President, Regional ManagerWest Los Angeles Office12100 W. Olympic Blvd., Suite 350Los Angeles, CA 90064(310) [email protected]

Enrique WongRegional ManagerLos Angeles Office515 S. Flower St., Suite 500Los Angeles, CA 90071(213) [email protected]

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Clockwise from top: 12th & Olive; One Santa Fe; and Wilshire La Brea

MICHAEL MALTZAN ARCHITECTURE RMA PHOTOGRAPHY


New Los Angeles Convention Center Hall andFarmers Field Project Signal Great Things for Downtown



L ATE last year the Cultural AffairsCommission of the City of LosAngeles unanimously approved

the final design for the new Los AngelesConvention Center Hall. The commis-sion also approved architectural submis-sions for Farmers Field and the new adja-cent garages to be located on Bond St.and on L.A. LIVE Way. The votes allowthe design of the complete project toadvance while keeping AEG and the Cityon-track to break ground on the newConvention Center hall as soon as along-term lease with an NFL franchise issecured.

“The Cultural Affairs Commission’sapproval is the culmination of an exten-sive collaborative process between AEGand the City of Los Angeles on the designof the new hall,” said Ted Fikre, ViceChairman and Chief Legal andDevelopment Officer, AEG. “This isanother important milestone in our con-tinued efforts to move this project for-ward; to modernize and increase produc-tivity of the Los Angeles ConventionCenter and bring the NFL back to LosAngeles.”

Under the City process, major projectson City owned property such as the newLos Angeles Convention Center Hall andFarmers Field are reviewed by theCommission at several stages along theway and at each stage the Commissionhas approved the design. During thehearing, members of the Commission

paid special attention to how the designstrengthens the visitor experience and tothe exteriors of the parking garages aswell as with their innovative use of mate-rials and lighting.

The Cultural Affairs Commissionwith its seven members appointed by theMayor is charged with design review forbuildings constructed on City propertyalong with its various other cultural andarts responsibilities.

Here are some additional facts regard-ing how this project can benefit LosAngeles:

Economic Boost for All Angelenos

The project would create between20,000 and 30,000 temporary and perma-nent living wage and union jobs. Thosejobs would be everything from construc-tion and hospitality to stadium opera-tions and convention center event man-

agement.$1.9 billion in output and support

into the community.$378 million in direct expenditures

into the Los Angeles economy.

Top-tier Convention Center

Right in L.A.’s Downtown

The upgraded convention center withincreased exhibition space would propelLos Angeles to #5 in U.S. convention cen-ters compared to #15 now.

An expanded convention center couldmean at least 80 annual booked eventdays in downtown L.A.

The new Event Center would have atotal of 1.7 million gross square feet anda roof.

Bigger Entertainment Draw

The complex can serve as the homefield for four teams simultaneously.

A state-of-the-art Farmers Field wouldallow Los Angeles to attract major eventssuch as the Super Bowl, Pro Bowl, NCAAFinal Four, Rodeos, Motor Cross, othercollegiate championships and OlympicGames among others.

Smarter Development and Proven Traffic

Management

Farmers Field’s location will utilizeexisting infrastructure and investmentalready made to service the region.

The project is convenient to andaccessible by three major metro rail lines(red/purple line, blue line, and expositionline), and further provides connectivelyto Union station; the remainder of theMetro Bus and rail system; and otherlocal and regional transit operatorsincluding the 40 bus routes that directlyserve the site area.

The project site is also served by morethan 20 freeway interchanges and 4major freeways.

The new facilities will continue usingthe successful traffic and parking modelemployed by STAPLES Center, L.A. LIVE,and the Los Angeles Convention Centerto manage traffic and parking. This is aproven model to accommodate largeevents.

There are currently approximately32,000 parking spots within a 15 minutewalk of Farmers Field and 10,300 of themare onsite.

‘The Cultural Affairs Commission’s approval is the culmination ofan extensive collaborative process between AEG and the City ofLos Angeles on the design of the new hall. This is another impor-tant milestone in our continued efforts to move this project for-ward; to modernize and increase productivity of the Los AngelesConvention Center and bring the NFL back to Los Angeles.’

TED FIKRE, Vice Chairman and Chief Legal and Development Officer, AEG

South Bay 2790 Skypark Dr., Ste. 207 | Torrance CA 90505

Phone: (310) 530-6060 | Fax: (310) 530-6187

Downtown Los Angeles 1414 S. Grand Ave., Ste. 378 | Los Angeles CA 90015

Phone: (213) 748-1355 | Fax: (213) 748-7729

San Fernando Valley 4910 Van Nuys Blvd., Ste. 209 | Sherman Oaks, CA 91403

Phone: (818) 990-5200 | Fax: (818) 990-5202

Available SuitesSuite 802 1,541 RSF Suite 806 1,145 RSF

FeaturesPanoramic city views, beautiful exterior & lobbies

Professional management

On-site lobby security officer

Security camera DVR system

Staff break room, lounge and exterior patio

ParkingAmple parking - floors 2-5

On-site parking attendant and 24/7 access

Rental Rate$2.75 sq. ft. full service gross

California Professional Center | 1400 South Grand Ave. | Los Angeles, CAMedical Suites For Lease

Contact Jeffrey D. Cunningham Aaron Boss (310) 517-4860 (310) 517-4864 [email protected] [email protected] BRE#: 01363877 BRE#: 01381686

www.medicalasset.com

South Bay 2790 Skypark Dr., Ste. 207 | Torrance CA 90505

Phone: (310) 530-6060 | Fax: (310) 530-6187

Downtown Los Angeles 1414 S. Grand Ave., Ste. 378 | Los Angeles CA 90015

Phone: (213) 748-1355 | Fax: (213) 748-7729

San Fernando Valley 4910 Van Nuys Blvd., Ste. 209 | Sherman Oaks, CA 91403

Phone: (818) 990-5200 | Fax: (818) 990-5202

CMC Medical Plaza | 1414 S. Grand Ave. | Los Angeles, CAOffice & Medical Office Suites Available

Available SuitesSuite 105 1,152 RSF Suite 140 2,105 RSFSuite 307 2,242 RSFSuite 345 1,846 RSFSuite 380 1,818 RSF Suite 378-385 1,486-2,625 RSF Suite 400* 4,003 RSF

Features4-story, Class A building Ground floor pharmacyOn site management & security guardLocated on campus at California Hospital Medical CenterImmediate access to 10 & 110 freeways

Rental RateNegotiable

* Call for availability

H

ContactAaron Boss Brock Burnett (310) 517-4864 (818) 990-5200 x102

[email protected] [email protected] BRE#: 01381686 BRE#: 01814211

www.medicalasset.com



CHANGING THE L.A. REAL ESTATE LANDSCAPE FOREVEROwned and developed by Olympic & Georgia Partners, LLC, a single-purpose entity.The Ritz-Carlton Residences at L.A. Live are not owned, developed, marketed, leased,or sold by The Ritz-Carlton Hotel Company, L.L.C. (“Ritz-Carlton”). Olympic & Georgia Partners, LLC uses The Ritz-Carlton marks under license from Ritz-Carlton, which has

not confirmed the accuracy of any of the statements or representations made herein

224 units sold $375,000,000

in sales

SOLDOUT




31million sq.ft.Total inventory of high-rise office buildings Total supply of built multi-

family units (current)

MULTI-HOUSING

• Total sq. ft. of high-rise officeproperties delivered since 2000

• Total sq. ft. of high-rise currently proposed. 0%29,588

Total units of multi-hous-ing properties deliveredsince 2000

18,812

Percentage of total supplybuilt / renovated since 2000

64%

Total multi-housing unitsunder construction or underrenovation

5,169

Total multi-housing unitscurrently proposed

14,976

10-year average annual renttrend (average monthly rent)

+5%

0

29%25

Supply of high-riseproduct built / reno-vated since 2000

$6.3billionTotal value of officeinvestments*

$650millionTotal value of landinvestments*

$218millionTotal value of multi-housing investments*

$36millionTotal value of hotelinvestments*

6,530Total current supply of hotel units

3,258Total units of hotel propertiesdelivered since 2000

1,639Total hotel units under construc-tion or renovation.

1,263Total hotel units proposed

+5%

5

10-year average annual hotelrate trend (average daily rate)

New daily needsretail establish-ments introducedsince 2010

of L.A.’s total high-riseinventory was builtbetween 1980 and 1989.

Years between lasthigh-rise officecompletion (1992)and next sched-uled deliver (2017).

Total sq. ft. high-rise under construction(Wilshire Grand - 2017 est. delivery)

Downtown L.A. By the Numbers

390,000

10-yr. average annual high-rise office rate trend (askingaverage monthly lease rate)

+3%

Size rankof L.A.’sdowntown,nationally.

Latest high-risedirect vacancy rate,Q1 2014

1119.3%

Recent historic lowhigh-rise directvacancy rate Q4 200711.8%

*sold since January 2013 ($10m+)Source: CBRE

By JEFFREY D. CUNNINGHAM

Healthcare SeesGrowth Downtown

THERE is a revival of healthcareunderway in Downtown LosAngeles! In the past 25 years,

DTLA has gone through a full circleand two recessions, but has emergedstronger than ever. Specifically, thehealthcare environment has grownsubstantially. As the increase inemployees in DTLA has recovered andthe expansion of downtown housingoptions has continued and nowexploded, the demand for qualityhealthcare services has attracted manynew healthcare providers. The rentalrates for medical office suites haveremained relatively level during thepast 25 years while other commercialproperty sectors have fluctuated dra-matically. This rent stability haveallowed existing practices to flourishand new medical providers and servic-es to enter the DTLA healthcare mar-ketplace.

Since 1988, Medical AssetManagement has been asset managingmedical properties in DTLA and hasbeen tracking both the medical tenantprofiles as well as interfacing with thehospital C-suite executives to facilitateimproving healthcare services andfacilities. There are four micro marketssurrounding DTLA, includingCalifornia Hospital Medical Center,Good Samaritan Hospital, St. VincentMedical Center and White MemorialMedical Center. These hospitals haveall been serving DTLA for decades andare thriving in the rebirth of health-

care. For Example, in recent years,California Hospital has opened a stateof the art Los Angeles Center forWomen’s Health, a Cancer TreatmentCenter, a USC/Eisner family practiceInternship clinic, a North EastCommunity Center operatedCalifornia Family Care clinic, aCalifornia Kidney Care Center forDialysis, a Los Angeles Center forHeart Health and the just openedHope Street Margolis Family Center.California Hospital has also recentlybrought on board a new President,Margaret R. Peterson, Ph. D., who isbringing her many years of healthcareleadership to the organization.

These commitments by DignityHealth at the California Hospital cam-pus to serve the DTLA community arealso supported by The CaliforniaHospital Medical Center Foundation,headed by Nathan Nusbaum, whichhas annually sponsored the CaliforniaHospital Golf Classic, the Heart of theCity 5K and the Le Grande AffaireBlack Tie Gala. These events haveproven to bring the healthcare com-munity together with Los Angelesbusiness leaders and hospital support-ers who continue to improve thehealth of the community.

The future for healthcare in DTLAis as bright as ever.

Jeffrey D. Cunningham is ManagingPrincipal of Medical Asset Management.


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