With a $630-million construction loan in hand, Related Cos. will begin site preparation this month for The Grand, a long-awaited Frank Gehry-designed tower complex in Downtown Los Angeles.
The approximately $1-billion development, slated to replace a parking structure across the street from Walt Disney Concert Hall, was conceived more than a decade ago as a public-private partnership between Related and various city and county agencies. Plans call for the construction of two high-rise buildings flanking a central public plaza, activated by 215,000 square feet of commercial uses that will include, shops, restaurants, and a movie theater. A 39-story building - featuring 349 market rate apartments and 87 units of deed-restricted affordable housing - will rise at the corner of 2nd and Olive Streets, while a 20-story, 309-room Equinox Hotel will stand at Olive and 1st Street.
Deutsche Bank provided construction financing for the project, which has also received a $290-million investment from CORE USA, a joint venture of China Harbour Engineering Company and CCCG Overseas Real Estate.
“Today is an exciting day not just for Related and our partners, including CORE, Deutsche Bank, and the Grand Avenue Authority, but for all of Downtown Los Angeles and the region,” said Rick Vogel, Senior Vice President of Related Urban, the mixed-use division of Related. “With the close of financing, the momentum on The Grand continues, and Related, the County, City and CRA/LA’s longstanding vision for Grand Avenue will soon become a reality.”
Construction of The Grand is expected to be completed in late 2021. According to Related Cos., the project will generate more than 10,000 jobs and $2.2 million in annual county tax revenue.
Though The Grand is considered the centerpiece of the development, other elements of the larger Grand Avenue Project have already come to fruition, including the 12-acre Grand Park, the 19-story Emerson apartment tower, and The Broad Contemporary art museum. Construction is also underway for a new subway station at 2nd and Hope Streets, one block west of Grand Avenue.
In addition to The Grand and the Walt Disney Concert, Gehry is expected to add another Downtown landmark to his portfolio in the near future - a 200,000-square-foot expansion of the Colburn School.
- The Grand Archive (Urbanize LA)