A small commercial building across the street from the Los Angeles Convention Home that was once home to Hooters restaurant is ready to come down, with a two-tower hotel development set to rise in its place.
The property, located at the northeast corner of Figueroa Street and Pico Boulevard, is entitled for the construction of 42- and 25-story hotel towers featuring a combined 1,162 guest rooms in addition to 13,000 square feet of ground-floor retail space. Lightstone Group, the developer of the project, has reportedly topped the Marriott brands Moxy and AC Hotels to operate two 410-room inns in the larger building, and Hilton Garden Inn to operate over 300 rooms in the shorter building.
Designed by Gensler and landscape architecture firm AHBE, the Fig + Pico development would feature modern glass exteriors, with digital signage wrapping the tower bases, as seen in other nearby high-rise projects.
The existing building at 1248 S. Figueroa Street, which dates to the 1920s, was recently wrapped with protective fencing and a canopy. Earth movers appeared adjacent to the two-story structure last week, following demolition permits issued for the property in February 2019.
The recent movement at the site comes less than two weeks after a $355-million construction loan was secured for the larger of the two towers. However, actual construction permits for the project have yet to be issued.
Lightstone's project will also come with a boost from the City of Los Angeles, which agreed to a 25-year financial incentive package with the developer that could eventually amount to a $103.3 million subsidy. According to a report commissioned by the City, Lightstone's project was estimated to have a $67.4-million financing gap between construction costs and the estimated value of the completed hotel complex.
Though controversial, such incentive package have been granted to several hotel developments near the Convention Center, where city officials have long cited a lack of nearby hotel rooms as a reason for lost business.
The Convention Center itself is also slated for a $500-million expansion, which would be accompanied by an 850-room expansion of the J.W. Marriott Hotel complex by AEG.
- Fig + Pico (Urbanize LA)