The planned new residential skyscraper for downtown Los Angeles has cleared key regulatory hurdles to be built in unusual locations above existing parking garages.
The proposed tower is one of the tallest cities in the 53-storey city, already located in the heart of the city's most dense complex called Block, with office and hotel towers and Alamo's draft house cineplex, shops and restaurants.
City Planning Commission members approved the long-term addition last week. This heads to the city council for a final vote on the proposed 41-storey apartment or condominium tower to be built over the complex's original 12-storey garage.
Block is a downtown stubborn man who appeared in the early 1970s, when it filled the entire downtown block and opened as an indoor shopping mall boasting luxurious hotels and high-rise office buildings. For years, tourists gathered at Premier Address on Seventh Avenue and Flower Street.
When it was sold by 2013, Macy's Plaza at the time was an outdated downscale relic that had so much love, despite the location being one of the busiest things in the city, near famous office skyscrapers, hotels and subway interchanges.
Los Angeles developer Wayne Ratkovich leaned on an ambitious makeover that included removing the mall's roof and cutting out much of the main floor to create a public square filled with sunshine.
More entrances to the complex have been created, including the underground portal for the Light Rail Station at 7th Avenue/Metro Center.
However, the unexpected construction problem slowed the work and helped raise costs beyond the original $180 million budget to over $250 million. Ratkovich Co. sold its real estate interest in 2018 to one of its financial partners, National Real Estate Advisors.
Although National Real Estate Advisors did not respond to requests for comment on planned additions, the city planning committee's previous public documents show that it includes 466 units consisting of 83 studios, 271 one-bedroom units, 100 two-bedroom units and 12 three-bedroom units.
The tower only occupies part of the garage roof area, leaving space for the outdoor amenity deck with swimming pools, barbecue areas, and landscaping of lawns, shrubs, trees and more. Also at the top level are indoor and outdoor landscaped recreational spaces, the plan shows.
The garage will be seismically modified as part of the development the developers hope to start by 2027 and complete by 2030. The timing and decision to turn a unit into an apartment or condo depends on market demand, the developer said.
The plan approved by the Commissioner also allows owners to build large digital displays at multiple levels surrounded by seventh, eighth hopes, Flower Street.
Los Angeles is working on both a housing shortage and a slowdown in new construction, said Costar, a real estate data provider.
The number of apartment complex units under construction fell 22% year-on-year, pushing the city's multi-family vacancy rate to 5%, with tenants borrowing 10,000 units more than vacant seats in the past year.
Macy's store in Brock has recently closed. This is one of 66 Macy stores identified by management as counterproductive in January.
Some downtown stakeholders, including Office Landlord Rising Realty Partners, provided letters of support for the Block Housing Project.
“By adding multi-family residential uses, we will transform existing developments into true mixed-use projects, including residential, commercial and hotel use,” Rising Realty Partner said. “This project will help create a balanced, 24-hour community.”