Luster Returns to the ‘Golden Mile’ : High-Rises: After years of financial difficulties that stopped building activity, hundreds of units are coming on line and sales are brisk.
Nearly 400 new high-rise condominium units are set to open within the next two months along Wilshire Boulevard’s “Golden Mile” between Beverly Hills and Westwood.
The Dorchester officially opens this weekend with 108 upscale condos, mostly priced between $400,000 and $800,000. Joining this new addition to Wilshire are the Blair House and Park Wilshire towers.
The latter two projects are more than eight years in the making--stymied by a long bust along the corridor, marked by excess supply, low demand, high interest rates and losses totaling millions of dollars for lenders and investors alike.
Today, reported sales at all three projects are brisk--with more than 75% of units at Blair House pre-sold and about 50% in escrow at the Dorchester. But, as brokers gear up to market what could add up to 10 new projects along the boulevard within the next four years, some are expressing concern that history could repeat itself.
“If we’re not careful,” warned longtime condo broker Letizia Gelles, “it’s going to be like old times. The dark period can only be avoided with a strong economy.”
There seems little doubt that for the moment, the market remains strong. For-sale listings that once totaled nearly 500 at adjacent buildings have dwindled to under 100. And, interest in the new buildings, Gelles said, has been very high.
The Dorchester, at 10520 Wilshire, features 108 units and is a development of Urban Pacific, Los Angeles, and V.M.S. Realty Partners. Developer Michael V. Reyes, mastermind behind the 16-story “post-modern” project, also developed the nearby Mirabella condos.
He was lucky to sell out in 1982--just before the market along Wilshire took a nose dive. The buyers, he concedes, “got burned big time.”
His newest project features valet parking, a concierge, rooftop swimming pool, marble baths and Euro-style kitchens.
Blair House, at 10490 Wilshire, comes to market in early January with 128 units. It’s been known for the last several years as “Rusty” by Wilshire watchers--named so because it was nothing more than a rusting steel frame as buyers changed hands and contemplated when to resume construction. Prices start at about $500,000 and rise to about $2.3 million.
Park Wilshire, at 10724 Wilshire, hopes to shed its nickname of “Dusty”--named so by locals who remember its concrete shell standing unfinished since the early 1980s. Work on the 15-story building is almost complete, however, and 156 units should be ready for occupancy early next year.
The Wilshire, at 10580 Wilshire, may be just the ticket if you’re looking to spend as much as $1,500 in monthly maintenance fees and want an elevator that delivers you directly to your unit. Cal Fed Enterprises is promising that this 27-story granite-and-limestone creation will be Wilshire’s crown jewel. Even competitors have conceded the point.
If these projects don’t provide enough choice, look for more units to come on line as work continues on two condo projects on Wilshire, just east of Beverly Glen Boulevard, and several dozen condo conversion units at the Wilshire Manning hit the market too.
Talk has it that another two condo projects, both on the western end of the corridor may join the fray sometime within the next four years. And, plans still are circulating for a high-rise condo at the corner of Wilshire and Comstock Avenue.
Hammerson Closing Operations in L.A.
Hammerson Properties West USA Corp. is getting ready to close up shop in Los Angeles next month--having completed the sale of its only two investments in the area.
Last spring, Hammerson sold the historic 818 Building at 7th and Figueroa streets (formerly known as the Barker Bros. building) and an adjacent parcel to the Macklowe Group for more than $100 million. Hammerson also has sold the 655 South Hope Building to Shuwa Investments Corp. for a total of $30.3 million. Both buildings were completely renovated and upgraded by Hammerson, which also added nine floors and a new facade to the Hope Street tower.
London-based Hammerson originality planned to acquire several other Los Angeles-area properties, but has decided to retreat completely instead. Brokers for the 655 South Hope Building, the Faulkner Co., report that Hammerson was disappointed with the lack of interest by Los Angeles tenants in renovated projects. And, say brokers, board members at Hammerson were “very worried” about owning property in a city known for earthquakes. Hammerson says it plans to focus on adding to its retail property investments in Canada.
Pasadena Doubletree Hotel Officially Open
Another Maguire Thomas project, Pasadena’s new Doubletree Hotel, has opened officially. The 12-story Doubletree at Plaza Las Fuentes features 360 guest rooms and a 12,000-square-foot conference facility. The plaza also includes an eight-story office building, 20,000 square feet of retail space and several restaurants. Another development phase is set to start next year with two office buildings and more retail space.
Warner Gateway Office Enclave Makes Debut
Making its official debut at Warner Center in the San Fernando Valley is the $75-million Warner Gateway office enclave. Built by Trammell Crow Co., the project has 225,000 square feet of leasable space in two three-story buildings. Signed tenants include CIGNA, Chubb Insurance Group, Medtronic Inc. and Traditional Mortgage Co. Project architect was the Nadel Partnership.
