Korean firm invests in Grand Avenue project
The developer of the massive Grand Avenue project in downtown Los Angeles said Tuesday that it had secured an additional financial partner for the long-delayed project.
The Korean investment firm Honua Group will invest $100 million in capital funds in the first phase of the project, which has been subjected to a series of delays as the credit market has tightened.
If the project does not secure a construction loan and break ground in February, the developer, Related Cos., must pay a penalty to the city and county, which own the land where the project would be built.
The investment firm is the second foreign group to invest in the public-private development. A fund controlled by Dubai’s royal family put $100 million into the project earlier.
The new investor must be approved by the Community Redevelopment Agency, the county Board of Supervisors and the joint city-county board overseeing the project.