Wood Partners to Bring 22-Story Luxury Rental to Los Angeles
- Jul 06, 2012
Downtown Los Angeles continues to be a hot spot for multi-family projects. Wood Partners has become the latest developer to announce plans to erect a high-rise apartment building in the city, in its case a 22-story tower housing 290 units in the South Park district.
The Atlanta-based company expects to break ground on the luxury, glass high-rise in September at 801 S. Hope St., with leasing to start in summer 2014. The .7-acre site was purchased by Wood Partners in 2008, though plans were put on hold during the economic downturn. Now the multi-family development firm thinks the timing is right to get the project off the ground.
“Downtown L.A. is seeing significant investment activity,” said Brian Hansen, Wood Partners’ director of development for Southern California. “That’s why our timing on Hope Street is perfect. Because we started back in 2007 and now have full construction drawings, we’ll be among the first projects out of the gate, and one of the first post-recession high-rises located in downtown.”
The project, designed after similar Woods Partners’ projects in Dallas and Denver, will have one- and two-bedroom units with floor-to-ceiling glass. Amenities will include a 10,000-square-foot elevated pool deck and a rooftop deck overlooking the Staples Center and LA Live to the southwest and the central business district to the north. The building will have six levels of parking, two of them underground, and 5,000 square feet of street-level retail.
“Our demographic for this area—young professionals—has shown a clear desire for that indoor-outdoor connection,” Hansen said.
In its second-quarter apartment market report on Los Angeles County, Marcus & Millichap notes that young renters are being drawn to the trendy, downtown areas of the city. Most of the new multi-family units being built in the county will be concentrated in downtown Los Angeles. Builders are expected to complete about 2,900 units this year, up from 1,680 in 2011. The Marcus & Millichap report states that approximately 6,400 rentals are under construction with about 13,500 more in the planning stages.
Wood Partners has an additional 800 units of multi-family housing under construction in Southern California, including 298 units at the $75 million Warner Park luxury apartment community 25 miles northwest of Los Angeles. The development is expected to begin leasing early next year.
Hansen expects the firm to seek more development opportunities in Los Angeles, adding that two of the largest and fastest-growing areas in the region are downtown L.A. and Hollywood. Wood Partners completed a 218-unit project, Alta Hollywood, two years ago.
“We see a lot of positive things happening downtown,” he said. “The South Park district is becoming a popular spot to live, in part because it’s extremely walkable—you’re close to L.A. Live, The Staples Center, movie theaters, retail and restaurants as well as jobs and the LA Metro Red line. It’s a true transit location.”
Other developers apparently agree. J.H. Snyder Development Co. is building The Vermont, a $200 million mixed-use project on Wilshire Boulevard in Koreatown that will include 464 units of high-rise rentals along with about 40,000 square feet of retail space. It is the largest residential development under construction in Los Angeles since 2008.
In late June, Los Angeles-based California Landmark Group announced it was investing $75 million in urban infill, apartment developments over the next year. Ken Kahan, CLG CEO, told Commercial Property Executive that some of the areas his firm was focusing on were downtown Los Angeles, including Koreatown, and Hollywood.
Wood Partners, which has 15 offices in the United States, acquires, develops, constructs and manages high density and mixed-use communities throughout the country. In 2011, it had 3,750 starts and has developed over 40,000 homes worth more than $5.5 billion since the firm was founded in 1998.