Next Century Plans $2B Mixed-Use Project in Los Angeles
- Dec 19, 2008
Next Century Associates has unveiled a proposal to build a $2 billion mixed-use property in Los Angeles’ Century Plaza, on the current site of the Century Plaza Hotel. The redevelopment proposal entails razing the 19-story hotel and replacing it with a pair of towers. One of the towers will be primarily residential, containing 130 luxury condominiums, while the other will feature a 240-room hotel and 163 hotel residences. The project will also include 100,000 square feet of office space, 106,000 square feet of retail and restaurants (pictured), plus a spa and a fitness center.Developer Next Century Associates is a partnership between Michael Rosenfeld, founder & CEO of Woodridge Capital Partners, and the D.E. Shaw Group, a global investment and technology development firm The partnership acquired Century Plaza Hotel in May from Sunstone Hotel Investors for $366.5 million. The price of $505,000 per room was one of the highest ever for a California hotel.“It is very exciting to be presenting this expansive vision for the future of Century City and Los Angeles in bringing new planning ideals into reality,” Rosenfeld told CPN. “In a time where most of the news centers around economic difficulties, its encouraging to see investment in the future of Los Angeles and in the economy as a whole”.Los Angeles Mayor Antonio Villaraigoso expressed support for the proposed development, saying it would “transform an aging hotel into an iconic destination and a state-of-the-art mixed-use development in the heart of our Westside”. The entire project will be LEED Silver certified and will follow the Century City Specific Plan to be consistent with City of Los Angeles’ goals for future environmentally friendly planning. Estimates conclude that the project will trigger more than 1,000 new and permanent jobs, while it will add to the city’s tax base $7.7 million each year. The total of $2 billion includes more than $800 million in construction expenses and 5,000 construction-related jobs. It is hoped that all approvals for the new plans will be completed in three years. Added Rosenfeld, “We’re at the beginning of an exciting planning process and in line with all the planning goals of the City of Los Angeles, such as environmental sensitivity, and pedestrian connectivity.”Rosenfeld stressed that the hotel will continue to operate as usual during the planning and entitlement phases.