The Grand, Park Fifth head list of stalled projects

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We won’t know for months -- maybe years -- the full extent of the damage done by the recent credit squeeze and financial crisis. In the short term, though, tighter credit makes it less likely that stalled Los Angeles real estate developments will move forward. The Los Angeles Business Journal today put together a list of major projects that aren’t moving, including:

-- The Grand, pictured at right, of which LABJ writes, ‘The mixed-use development has a new groundbreaking date of February 2009 at its site, above, but the $3 billion project has been delayed several times. Related Cos. has had trouble securing a construction loan, but it was disclosed last week that three Korean insurance companies will invest $100 million in the project.’

-- Also stalled, Park Fifth (which at 76 stories would have been the tallest condo project in L.A.), the SunCal Condo tower, the Universal City Vision plan and two other developments, which you can read about here.

Two cents: As Calculate Risk reports, the credit situation is improving. Thawing, if you will. That doesn’t mean, however, that money will suddenly become available for real estate development. Sometimes money is scarce for a good reason: It’s a bad time to build.

-- Peter Viles

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Photo: A model of the Grand project. Credit: Gehry Partners
Hat tip: LA Observed