FIRST QUARTER, 2OI8 DOWNTOWN LA MARKET REPORT. Photo by Hunter Kerhart

Transcription

1 FIRST QUARTER, 2OI8 DOWNTOWN LA MARKET REPORT Photo by Hunter Kerhart

2 Q MARKET REPORT ABOUT THE DCBID Founded in 1998, the Downtown Center Business Improvement District (DCBID) is a coalition of nearly 1,700 property owners in the central business district, united in their commitment to enhance the quality of life in the area. The organization has been a catalyst in the transformation of the Downtown Center District, turning it into a vibrant 24/7 destination. The mission of the Economic Development team is to improve and revitalize the District, and bring investment and new businesses to the area. We provide services to current and prospective residents, workers and businesses, including: Development Consulting Research and Information Requests Events and Marketing Monthly Housing and Office Tours Customized Tours and Reports Whether you need information on new development, introductions to local decision-makers and influencers, or you just want to learn more about Downtown s dynamic growth, we are the portal for information about the District and DTLA. To learn more about Downtown s Renaissance and how to join us, visit DEFINITION OF DOWNTOWN LA The DCBID defines Downtown Los Angeles as the area bounded by the 110, 101 and 10 freeways and the LA River, plus Chinatown, City West, and Exposition Park. The projects contained in this report are within a portion of Downtown Los Angeles, shown on the map to the left. 2 Downtown Center Business Improvement District

3 TABLE OF CONTENTS EXECUTIVE SUMMARY... 4 MARKET OVERVIEW Residential... 6 Office Significant Real Estate Sales... 7 Retail... 8 Hotel... 8 DEVELOPMENT UPDATE Commercial Development Map... 9 Residential Development Map Under Construction Proposed FEATURED PROJECTS Major Mixed-Use Residential Office Retail Hotel Civic & Cultural SPOTLIGHT ON DTLA Local Media US and Global Media Downtown Center Business Improvement District 3

4 Q MARKET REPORT EXECUTIVE SUMMARY After a record-breaking 2017 with over 2,800 new residential openings, the Downtown market remained strong in Q1, with news in all sectors reinforcing confidence in DTLA s continued growth. RESIDENTIAL Quickly absorbing the unprecedented amount of new inventory, the occupancy rate rebounded to 92.7%, while rents remained stable. 546 new units broke ground, including Six Four Nine Lofts, the first new affordable housing project in DTLA since the passage of Measure H. OFFICE The office sector was very active in Q1, with the $196 million sale of the Wedbush Building demonstrating the enduring value and renewed appeal of Downtown s Class A office towers. In leasing, Rising Realty announced new tenants H&M Innovation Labs and TubeScience at The CalEdison. Finally, Brookfield, DTLA s largest property owner, opened their first two Convene locations and started construction on a $60 million renovation of the plaza at Wells Fargo Center. RETAIL The big event of the quarter was the opening of the much-anticipated Shake Shack at 8th and Hill. Nearby, DTLA s emergence as a high-end streetwear mecca was boosted by the arrival of RSVP Gallery out of Chicago. In the Arts District, ROW DTLA added Boston-based fashion retailer Bodega to its growing and impressive list of tenants. HOSPITALITY With the Q1 debut of The NoMad and the re-opening of Hotel Figueroa, DTLA added two more boutique hotels to its already impressive roster. More good news is on the way with word that Journal Hotels has signed on to operate the Hotel Clark and Trinity Hotel, now slated to open next year. CIVIC & CULTURAL Construction began on the $1 billion Lucas Museum at Exposition Park, scheduled to open in On Bunker Hill, the cultural renaissance continues, as the Colburn School announced that Frank Gehry will design their expansion on Bunker Hill, and work began on the $40 million facelift for The Music Center. Q1 KEY HIGHLIGHTS Q1 KEY STATS 546 New residential units broke ground 92.7% Apartment occupancy rate $3.61 Average Class A Rent Per Square Foot $2.95 Apartment Asking Rent Per Square Foot The Wedbush Building sold for $196m The Lucas Museum broke ground in Exposition Park Brookfield began a $60 million renovation of the plaza at Wells Fargo Center 17.3% office vacancy rate 800K Square Feet YTD total office lease activity $ YTD Hotel RevPar 4 Downtown Center Business Improvement District

5 Photos by Hunter Kerhart Downtown Center Business Improvement District 5

6 Q MARKET REPORT MARKET OVERVIEW Residential The apartment occupancy rate rebounded to almost 93% as 2017 s record-breaking 2,831 new units continued to lease up. The Santa Fe Lofts, an adaptive reuse property, sold to MWest Holdings for $68.5 million. Central City Development broke ground on a 376-unit project at 1027 Wilshire in City West. Q Q Metropolis Apartment Occupancy Rate 92.7% 88.5% Apartment Asking Rent Per Sq Ft $2.95 $2.88 2,156 CONDO UNITS UNDER CONSTRUCTION Average Effective Rent Per Unit $2,515 $2,477 Condo Sales Condo Price Per Sq Ft $731 $650 Source: DTLA Life, CoStar RESIDENTIAL INVENTORY RESIDENTIAL UNITS Before 1999 Since 1999 Current Inventory Under Construction Total When Complete Proposed Market Rate Rental 2,426 20,200 22,626 7,657 30,283 23,052 Condos 829 5,266 6,095 2,156 8,251 6,335 Affordable 8,371 3,884 12, ,316 1,684 Total 11,626 29,350 40,976 9,874 50,850 31,071 Estimated Population 70,069 16,885 86,954 Estimated Population = # of units x 1.8 residents per unit x 95% occupancy rate 6 Downtown Center Business Improvement District

7 MARKET OVERVIEW Office Leasing got off to a strong start in Q1 with rents rising almost 6% and almost 90K sf of new net absorption. Construction began on the creative office revitalization of the historic Garland Building above The Globe Theatre on Broadway. New owners ESI Ventures and Urban Offerings revealed plans to convert the former home of Dearden s into 100K sf of creative office space. ROW DTLA Q Q Vacancy Rate 17.3% 16.5% Class A Rent Per Sq Ft $3.61 $3.40 Overall Rent Per Sq Ft $3.55 $3.33 YTD Net Absorption 89,062 36, m SQUARE FEET OF OFFICE SPACE YTD Leasing Activity 818, ,190 Source: CBRE 3.3m PROPOSED Significant Real Estate Sales Property Address Buyer Seller Price Wedbush Center Cerberus Lincoln Property Company $196m Santa Fe Lofts Mwest Holdings Capital Foresight $68.5m Morrison Hotel Five Chairs Xyvest Holdings, Inc. $14.5m CitizenM Hotel CitizenM Hotels System Property Development Co. $13.5m 950 S Broadway David Schnaid G.H. Palmer Associates $13m Downtown Center Business Improvement District 7

8 Q MARKET REPORT MARKET OVERVIEW Hotel Amsterdam-based citizenm purchased a surface parking lot at 4th and Spring with plans for a 315- room hotel. Jamison Properties filed plans to convert The Mart South at Olympic and Main into a 149-key hotel. Metropolis developer Greenland put the recently completed Hotel Indigo on the market for $280 million. Broadway Trade Center 1.3m SQUARE FEET OF RETAIL SPACE Retail 2.7m PROPOSED San Diego-based craft brewery Modern Times opened their first LA brewpub at 8th and Olive. Q Q YTD Occupancy Rate 79.9% 77.4% YTD Average Daily Rate $ $ YTD RevPAR $ $ Source: LA Tourism and Convention Board NoMad Li Orient opened at the US Bank Tower, bringing another dining option to Bunker Hill. Grocery Outlet opened at Sofia in City West, becoming the fourth full-service supermarket in DTLA. Q Q Vacancy Rate 4.3% 4.4% Average Rent Per Square Foot $2.49 $2.61 YTD Net Absorption 51,822 (-86,091) Source: CoStar 1,275 ROOMS 6,935 PROPOSED 8 Downtown Center Business Improvement District

9 Commercial Development Existing Under Construction/Renovation Proposed Opened or began construction in Q1 As of 03/31/18 Downtown Center Business Improvement District 9

10 Residential Development Existing Under Construction/Renovation Proposed 1 Opened or began construction in Q1 As of 03/31/18 10 Downtown Center Business Improvement District

11 Downtown Center Business Improvement District 11

12 Q MARKET REPORT Project Name Address Residential Units Hotel Rooms Office Retail Estimated Completion Developer MAJOR MIXED USE FINANCIAL DISTRICT Metropolis Phase II 899 Francisco St. 1,002 C = = 65, Greenland HISTORIC CORE Broadway Trade Center 801 S. Broadway = , , Waterbridge Capital SOUTH PARK Oceanwide Plaza 11th & Figueroa 504 C 184 = 166, Oceanwide Holdings RESIDENTIAL ARTS DISTRICT The Aliso 950 E. 3rd St. 471 = = 22, Legendary Development AMP Lofts 695 S. Santa Fe Ave. 320 = = 20, Bolour Associates Walnut Building 1745 E. 7th St. 57 = = = 2018 Hillcrest Company CHINATOWN LA Plaza Cultura Village 400 W. Cesar E Chavez Ave. 345 = = 50, LA Plaza de Cultura y Artes CITY WEST 1027 Wilshire Blvd Wilshire Blvd. 376 = = 6, Central City Development FASHION DISTRICT Six Four Nine Lofts 7th & Wall 55 = = = 2020 Skid Row Housing Trust FINANCIAL DISTRICT Grand Hope Lofts 888 S. Hope St. 526 = = 5, CIM Group 825 South Hill 825 S. Hill St. 516 = = 5, Onni Group Park Fifth 5th & Olive 660 = 14, Macfarlane Partners HISTORIC CORE 939 S. Broadway 939 S. Broadway 163 = = TBD 2018 Barry Shy 755 S. Spring St. 755 S. Spring St. 287 = = 8, Holland Partners Singer Sewing Building 806 S. Broadway 7 = = TBD 2018 Anjac Fashion Topaz 550 S. Main St. 159 = = 23, JADE Enterprises Banco Popular 354 S. Spring St. 188 = = 17, Standard Development 732 S. Spring St. 732 S. Spring St. 300 = = 7, Holland Partners Perla 400 S. Broadway 450 C = = 7, SCG America 950 S. Broadway 950 S. Broadway 30 = = 7, GH Palmer Broadway Palace Phase S. Broadway 439 = = 20, GH Palmer LITTLE TOKYO Lotus Astronaut E. S. Onizuka St. 77 = = 2, Etco Homes SOUTH PARK Circa 1200 S. Figueroa St. 648 = = 48, Jamison 1400 S. Figueroa St S. Figueroa St. 110 = = 1, DHG Family Trust Aven 1120 S. Grand Ave. 536 = = 10, Mack Urban Apex Phase II 900 S. Figueroa St. 341 = = 11, Holland Partners 12 Downtown Center Business Improvement District

13 Project Name Address Residential Units Hotel Rooms Office Retail Estimated Completion Developer SOUTH PARK (CONT.) Onyx Phase I 1300 S. Hope St. 162 = = 13, JADE Enterprises Axis on Eleventh 1200 S. Broadway 177 = = 7, Forest City Hope + Flower 1212 S. Flower St. 730 = = 8, Onni Group 1133 Hope Tower 1133 S. Hope St. 200 C = = 5, Fulton Street Ventures 1317 S. Hope St S. Hope St. 38 = = 4, FMB Development HOTEL ARTS DISTRICT Soho House 1000 S. Santa Fe St. = 48 = 10, Soho House FINANCIAL DISTRICT Hotel Clark 426 S. Hill St. = 348 = = 2019 Chetrit Group Trinity Hotel 851 S. Grand Ave. = 183 = = 2018 Chetrit Group FASHION DISTRICT Proper Hotel 1106 S. Broadway = 148 = = 2018 The Kor Group Hoxton Hotel 1060 S. Broadway = 164 = = 2018 Ennismore OFFICE & RETAIL ARTS DISTRICT Santa Fe Business Center 500 S. Santa Fe Ave. = = 90,000 = 2018 Chalmers AT MATEO Mateo & Palmetto = = 50, , Blatteis & Schnur ROW DTLA 7th & Alameda = = 1,200, , Atlas Capital The Ford Building 2060 E. 7th St. = = 254,000 60, Shorenstein 4th & Traction 963 E. 4th St. = = 100,000 30, Hudson Pacific Properties Maxwell Building 405 S. Mateo St. = = 56,500 = 2018 Hudson Pacific Properties CHINATOWN Capital Milling Building 1231 N. Spring St. = = TBD 50, S&R Partners JEWELRY DISTRICT LA Jewelry Mart 712 S. Olive St. = = 85,000 14, Atlas Capital 718 S. Hill St. 718 S. Hill St. = = 45,000 7, Bow West Capital HISTORIC CORE 537 S. Broadway 537 S. Broadway = = 70,000 8, King's Arch 731 S. Broadway 731 S. Broadway = = 23,000 = 2018 Unknown Garland Building 740 S. Broadway = = 59,000 6, S Broadway Associates, LLC The Trust Building 433 S. Spring St. = = 300,000 = 2018 Rising Realty Partners SOUTH PARK Herald Examiner 1111 S. Broadway = = 80,000 = 2018 Georgetown Co./The Hearst Corp. CIVIC ARTS DISTRICT Metro Maintenance Facility 590 S. Santa Fe Ave. = = = = 2018 LA Metro TOTAL 9,874 Residential Units 1,275 Hotel Rooms 2,913,000 Office 1,350,000 Retail TOTAL # OF PROJECTS = 52 C = Condo Downtown Center Business Improvement District 13

14 Q MARKET REPORT PROPOSED Project Name MAJOR MIXED USE ARTS DISTRICT Address Residential Units Hotel Rooms Office Retail 6AM 6th & Alameda 1,305/431 C , ,000 SunCal Developer 2110 Bay St Bay St. 110 = 113,000 51,000 Tishman Speyer 670 Mesquit St. 670 Mesquit St , ,000 V.E. Equities BUNKER HILL The Grand 130 S. Grand Ave. 323/113 C , ,000 Related California Angels Landing 361 S. Hill St. 425/250 C 481 = 45,000 Peebles Corp., Macfarlane Ptrs., Claridge Props. CIVIC CENTER Times Mirror Square 100 S. Broadway 1,127 = TBD 34,000 Onni Group 232 W. 2nd St. 232 W. 2nd St. 107 C = 534,000 7,000 Tribune Media Company FASHION DISTRICT City Market 9th & San Pedro 945 C 210 TBD 225,000 Peter Fleming LITTLE TOKYO Little Tokyo Galleria 333 S. Alameda St. 994 = = 100,000 TBD SOUTH PARK 1020 S. Figueroa St S. Figueroa St. 435 C 300 = 80,000 Hazens Broadway Square Los Angeles S. Broadway 549/895 C 208 = 30,000 PRH LA Mart Olympic Tower 811 W. Olympic Blvd ,500 65,000 Ben Neman Figueroa Centre 925 S. Figueroa St. 200 C 220 = 94,000 Regalian 1600 S. Figueroa St S. Figueroa St. 134/202 C 250 6,500 9,000 L&R Group of Companies RESIDENTIAL ARTS DISTRICT Industrial Street Lofts 1525 Industrial St. 344 = 25,000 4,000 Camden Alameda & 4th Lofts 360 S. Alameda St. 63 = = TBD South Alameda Development 1800 E. 7th St E. 7th St. 122 = = 8,000 Hillcrest Company Palmetto Colyton 527 S. Colyton St. 310 C = = 11,500 Bolour Assoc 520 S. Mateo St. 520 S. Mateo St. 600 = 20,000 30,000 Carmel Partners 330 S. Alameda St. 330 S. Alameda St. 186 = = 22,000 Greystar 5th & Seaton 5th & Seaton 220 = = 44,500 WW-5th & Seaton 676 S. Mateo St. 676 S. Mateo St. 185 = = 23,000 Maxaam Enterprises 668 S. Alameda St. 668 S. Alameda St. 475 = = 45,000 AvalonBay Communities 1000 S. Mateo St S. Mateo St. 113 = 12, ,000 Mateo Arts, LLC Arts District Center 1101 E. 5th St. 129 C 113 = 70,000 Arts District Development, LLC 234 N. Center St. 234 N. Center St. 430 = = 8,500 Atlas Capital 2117 E. Violet St E. Violet St. 509 = = 288,000 Onni Group 4th & Hewitt 940 E. 4th St. 93 = = 20,000 Shoreham Capital S. Imperial St. 140 = 7,000 7,000 Adam Lindemann CHINATOWN College Station 924 N. Spring St. 770 = = 51,000 Atlas Capital 720 W. Cesar E Chavez 720 W. Cesar E Chavez 299 = = 8,000 Zion Enterprises/TA Partners 211 W. Alpine St. 211 W. Alpine St. 122 = = 4,000 Izek Shomoff 708 N. Hill St. 708 N. Hill St. 162 = = 5,000 Avant Development 643 N. Spring St. 643 N. Spring St. 203 = = 21,000 Redcar Properties 1201 N. Broadway 1201 N. Broadway 124 = = 8,500 Johnson Fain Elysian Park Lofts 1251 N. Spring St. 920 = = 18,000 S&R Partners 14 Downtown Center Business Improvement District

15 PROPOSED Project Name Address Residential Units Hotel Rooms Office Retail Developer CITY WEST 1018 W. Ingraham St W. Ingraham St. 37 = = 2,000 Amidi Group Hartford Villas 459 S. Hartford Ave. 101 = = = SRO Housing Corporation 1150 Wilshire Blvd Wilshire Blvd. 140 C = = 9,000 PacTen Partners Sapphire 1111 W. 6th St. 369 = = 26,000 Jade Enterprises The Seven 1135 W. 7th St. 241 = = 7,000 Pangea Development 495 S. Hartford Ave. 495 S. Hartford Ave. 218 = = = Urban View Investments Ferrante 1000 W. Temple St. 1,500 = = 30,000 GH Palmer HOM Lofts 1230 W. Ingraham St. 80 = = = Sharp Capital Bixel Residences 675 S. Bixel St = 5,500 Career Lofts LA 136 S. Beaudry Ave. 136 S. Beaudry Ave. 220 = = 7, South Spring Holdings, LLC Lifan Tower 1247 W. 7th St. 304 = = 5,500 Lifan Group FASHION DISTRICT Fashion District Residences 222 E. 7th St. 452 = = 13,500 Realm Group/Urban Offerings 1100 S. Main St S. Main St. 379 = = 26,000 Jade Enterprises FLOR 401 Wall & 7th 100 = = TBD Skid Row Housing Trust Southern California Flower Market 755 S. Wall St. 323 = 59,000 81,000 Southern California Flower Growers, Inc FINANCIAL DISTRICT 949 S. Hope St. 949 S. Hope St. 236 = = 6,500 Forest City West Fig & 8th 744 S. Figueroa St. 436 = = 10,000 Mitsui Fudosan 845 S. Olive St. 845 S. Olive St. 205 = = 2,500 Heart Olive 8th, Hope & Grand 754 S. Hope St. 409 = = 7,500 Mitsui Fudosan 755 S. Figueroa St. 755 S. Figueroa St. 784 C = = 6,500 Brookfield Properties HISTORIC CORE Hill Tower Lofts 920 S. Hill St. 239 C = = TBD Barry Shy Medallion 2.0 4th & Main 500 = = 38,000 Saeed Farkhondehpour SB Omega 601 S. Main St. 452 C = = 21,500 Barry Shy Broadway Lofts 955 S. Broadway 163 C = = 6,500 Barry Shy Beacon 340 S. Hill St. 428 = = 5,500 Equity Residential Spring St. Tower 525 S. Spring St. 360 = = 9,500 Downtown Management JMF Tower 333 W. 5th St. 142 C = = 25,000 JMF Development 433 S. Main St. 433 S. Main St. 196 = = 6,500 Main Street Tower, LLC Brooks Building 644 S. Broadway 30 = = 2, S Broadway LLC The Hill 940 S. Hill St. 232 = = 14, Hill LLC The Alexan 850 S. Hill St. 305 = = 6,000 Trammell Crow Residential INDUSTRIAL DISTRICT Weingart Tower 554 S. San Pedro St. 278 = = = Weingart Center 600 S. San Pedro St. 600 S. San Pedro St. 303 = = = Weingart Center Efficient City Apartments E. 5th St. 160 = = 10,000 Dayan Investments SP7 419 E. 7th/647 S. San Pedro 81 = = TBD Skid Row Housing Trust 6th at Central 601 S. Central Ave. 236 = = 12,000 Triangle Plaza LLC JEWELRY DISTRICT Foreman & Clark 7th & Hill 125 = = 8,500 Bonnis Properties LITTLE TOKYO The Catalina 443 S. San Pedro St. 78 = = 7,000 Statewide Acquisitions Corp C = Condo Downtown Center Business Improvement District 15

16 Q MARKET REPORT PROPOSED Project Name SOUTH PARK Address Residential Units Hotel Rooms Office Retail Developer Arris 1201 S. Grand Ave. 250 C = = TBD City Century Emerald 1340 S. Olive St. 154 = = 10,500 Jade Enterprises Vara 1233 S. Grand Ave. 148 C = = 5,000 City Century 1410 S. Flower St S. Flower St. 147 = = 6,500 Oxley Place, LLC Olympia Olympic Blvd. & Harbor Fwy. 1,367 = = 40,000 City Century 1000 S. Hill St S. Hill St. 700 = = 15,000 Onni Group 1045 S. Olive St S. Olive St. 794 = = 12,500 Crescent Heights Onyx Phase S. Hope St. 248 = = 30,000 Jade Enterprises 1335 S. Grand Ave S. Grand Ave. 284 = = 6,500 M&A Gabaee 1334 S. Flower St S. Flower St. 177 = = 2,500 The Condor 1340 S. Hill St S. Hill St. 233 = = 9,000 Suncoast Hill Street, LLC HOTEL ARTS DISTRICT 400 S. Alameda St. 400 S. Alameda St. = 66 = = Habita Arts District, LLC 710 S. Santa Fe Ave. 710 S. Santa Fe Ave. = 10 = = Firehouse Hotel, LLC FASHION DISTRICT 124 E. Olympic Blvd. 124 E. Olympic Blvd. = 149 = = Jamison HISTORIC CORE Cambria Hotel Spring St. 419 S. Spring St. = 180 = = PNK Group Spring Street Hotel S. Spring St. = 176 = = Lizard Capital citizenm Hotel 361 S. Spring St. = 315 = = citizenm SOUTH PARK 1320 S. Flower St S. Flower St. = 43 = = 1318 Flower, LLC Fig+Pico Figueroa St. & Pico Blvd. = 1,162 = 13,000 Lightstone Cambria Hotel James M. Wood = 247 = = Sun Capital & Pacific Property Partners Morrison Hotel 1246 S. Hope St. = 245 = TBD Relevant Group Trical Hotel 1300 S. Figueroa St. = 1,024 = TBD Trical Construction Inc S. Hope St S. Hope St. = 75 = TBD 1221 S Hope St, LLC OFFICE & RETAIL ARTS DISTRICT 2nd & Vignes 929 E. 2nd St. = = 65,000 32,000 Est4te Four Capital 2136 E. Violet St E. Violet St. = = 91,000 6,000 Lowe Enterprises Produce LA 640 S. Santa Fe Ave. = = 107,000 TBD Continuum Partners 405 S. Hewitt St. 405 S. Hewitt St. = = 255,000 15,000 Legendary Development 2159 E. Bay St E. Bay St. = = 222,000 TBD Tishman Speyer FASHION DISTRICT Norton Building 755 S. Los Angeles St. = = 60,000 43,000 Urban Offerings Western Pacific Building 1031 S. Broadway = = 200,000 = Onni Group HISTORIC CORE Merritt Building 761 S. Broadway = = 50,000 TBD Bonnis Properties Dearden s Building 700 S. Main St. = = 140,000 TBD Urban Offerings TOTAL PROPOSED 31,071 Residential Units 6,935 Hotel Rooms 3,242,000 Office 2,704,000 Retail TOTAL # OF PROJECTS = Downtown Center Business Improvement District

17 FEATURED PROJECTS Major Mixed-Use METROPOLIS Developer: Greenland The first phase of this $1 billion project, including 308 condos and the 350-room Hotel Indigo, is now open, with the remaining 1,000+ condos and 60,000 SF of retail space expected in PROPOSED THE GRAND Developer: Related Construction is scheduled to begin this year on this long-awaited Bunker Hill project. Designed by Frank Gehry, it will feature over 400 residential units, a 305-room Equinox Hotel, and over 200,000 SF of retail space. OCEANWIDE PLAZA Developer: Oceanwide Holdings Across from Staples Center and L.A. LIVE in South Park, this $1 billion project will include 504 condos, 184 hotel rooms, and almost 200,000 SF of retail. PROPOSED 1020 S. FIGUEROA Developer: Hazens At a cost of $700 million, Downtown s latest mega-project in South Park will have 435 condos, 300 hotel rooms, and 80,000 SF of retail. Downtown Center Business Improvement District 17

18 Q MARKET REPORT FEATURED PROJECTS Residential 825 SOUTH HILL Developer: Onni One of several projects in Downtown from the Vancouver based developer, this one near 9th and Olive will rise 50 stories and hold 516 residential units. PARK FIFTH Developer: Macfarlane Partners Across from Pershing Square, construction is well underway, consisting of a 24-story tower and a 7-story building with a total of 660 residential units and 14,000 SF of retail. GRAND HOPE LOFTS Developer: CIM Group CIM Group s project, which will have 526 residential units, is now topped out at 33 stories and is scheduled to open later this year.. PROJECTS OPENED IN Q1 Name Neighborhood Description NoMad Hotel Financial District High-end 241-room hotel from Sydell Group Mikado Little Tokyo 41 micro-unit apartments on 1st Street The Pettebone Building Historic Core Historic renovation of 5-story building on Broadway Q1 SELECT OFFICE LEASES Tenant Building Address Dentons Figueroa & Wilshire 601 S Figueroa St 62,383 Kirkland & Ellis City National Plaza 515 S Flower St 52,772 Uber Technologies LA Times Building 145 S Spring St 41,296 Preferred Bank Figueroa & Wilshire 601 S Figueroa St 37,565 Source: CBRE 18 Downtown Center Business Improvement District

19 FEATURED PROJECTS Office BROADWAY TRADE CENTER Developer: Waterbridge Capital With over 1 million SF of space that has been vacant for years, this project will activate almost a full city block at Broadway and 8th in the Historic Core. ROW DTLA Developer: Atlas Capital Transformation of 1.5 million SF of industrial space into a creative destination is underway with the first retail and office tenants taking occupancy. FORD FACTORY Developer: Shorenstein The former Ford Factory in the Arts District is being revitalized as a state-of-the-art 254,000 SF office destination that will be the new home of Warner Music Group in LA JEWELRY MART Developer: Atlas Capital Built in 1917 in the heart of the Financial District, this project features 85,000 SF of office space and 14,000 SF of ground-floor retail. Downtown Center Business Improvement District 19

20 Q MARKET REPORT FEATURED PROJECTS Retail CAPITOL MILLING BUILDING Developer: S&R Partners Located in Chinatown next to the new State Historic Park, this project will revitalize 5 industrial buildings dating from 1881 and create over 50,000 SF of food and beverage options mixed with creative office. AT MATEO Developer: Blatteis & Schnur This mixed office and retail project in the Arts District will feature open-air pedestrian walkways and architecture that reflects the industrial surroundings. JORDAN BRAND STORE Developer: Foot Locker Located near 6th & Broadway, this 19,000 SF signature retail location will feature a rooftop court. Q1 SELECT RETAIL OPENINGS Takasan OMSB MediDate Coffee Chinchikurin Hatch Yakitori Hayato Kapoor s Akbar DTLA Fitness Li Orient DTLA Acupuncture South City Fried Chicken Paris Baguette Shake Shack Palikao Guadalaharry s Burrito Joint Grocery Outlet The Dolly Llama Oh Hello Dog JOAN Kasih 20 Downtown Center Business Improvement District

21 FEATURED PROJECTS Hotel PARK HYATT Developer: Oceanwide The 183-room hotel component of Oceanwide Plaza is the first Hyatt in DTLA, adding to the growing mix of operators. THE HOXTON Developer: Ennismore Restoration of the historic Los Angeles Railway Building at 11th and Broadway will feature 164 hotel rooms. Civic & Cultural REGIONAL CONNECTOR Developer: Metro The 1.9-mile, $1.75 billion underground light rail extension, set to open in 2021, will provide a one-seat ride for north/south and east/west travel across Los Angeles County through the heart of Downtown. 6TH STREET VIADUCT Developer: City of Los Angeles The iconic Sixth Street Viaduct is being replaced. The new bridge s community features will enhance the connection between the Arts District on the west side of the Los Angeles River and historic Boyle Heights on the east side. Completion is scheduled for Downtown Center Business Improvement District 21

22 Q MARKET REPORT SPOTLIGHT ON DTLA Local Media DOWNTOWN LA S SWANKY NOMAD HOTEL IS LUXURIOUS AND HIP The former Bank of Italy building at Seventh and Olive reopens this weekend as the NoMad Los Angeles, the Los Angeles location of the posh New York brand from Sydell Group, which opened the Freehand Hotel in the Commercial Exchange building in June. The old bank was designed by Morgan, Walls, and Morgan, and opened in Curbed LA, 1/18/18 DTLA RESIDENTIAL VACANCY RATE DIPS AMID MORE LUXURY DEVELOPMENT The residential vacancy rate in Downtown dropped to 10 percent by the end of last year, amid the rapid pace of development there, notably in the luxury sector. The most recent numbers compared favorably to the first quarter of 2017, when the vacancy rate reached 12.4 percent. More than 1,600 new luxury units opened in Downtown in the first half of 2017 alone. The Real Deal, 1/22/18 THE INTERCONTINENTAL DOWNTOWN L.A. DEBUTS AS THE TALLEST HOTEL WEST OF THE MISSISSIPPI The shiny new building towers over everything else in the city s financial district. It has 889 guestrooms, a Sky Lobby on the 70th floor, and five dining options, including the tallest open-air bar in the Western Hemisphere. It is also the largest InterContinental property in the Americas and represents parent company InterContinental Hotels Group s western expansion. USA Today, 3/5/18 THE MOST EXCITING CONSTRUCTION PROJECT IN LA RIGHT NOW IS THE REGIONAL CONNECTOR It s a gargantuan subterranean structure that stretches 1.9 miles from Little Tokyo to the Financial District. When complete, it will provide a one-seat ride from Santa Monica to East LA, another from Long Beach to Azuza. That s a distance of almost 40 miles, north to south, east to west, on one fare. Curbed LA, 2/27/18 FRANK GEHRY TO DESIGN PERFORMING ARTS SCHOOL EXPANSION The project is one of several, including Grand Park and The Broad, proposed as part of a larger plan for Grand Avenue that would transform the street into a hub of art, music, and culture in the heart of Downtown. Curbed LA, 3/14/18 HISTORIC HIGH-RISE SOLD AS DOWNTOWN L.A. S FORMER BUSINESS DISTRICT THRIVES One of downtown s oldest tall buildings, the former Los Angeles offices of the Atchison, Topeka and Santa Fe Railroad, sold this week for nearly $70 million to a residential developer...the new owner, MWest Holdings, plans to spend an additional $6 million to renovate and upgrade the 132-unit complex, said Matthew Ellis, chief investment officer of the Sherman Oaks landlord and developer. LA Times, 3/31/ Downtown Center Business Improvement District

23 SPOTLIGHT ON DTLA US & Global Media JANUARY 2018 FIFTEEN YEARS IN THE MAKING, HOW DOWNTOWN L.A. FINALLY ARRIVED This past year, cultural and lifestyle developments Row DTLA and City Market South opened up bringing with them a string of restaurants and indie shops, and warranting the city a slot on our annual Where to Go list of hot travel destinations. APRIL 2017 DOWNTOWN LOS ANGELES IS AMERICA S MOST COLORFUL NEIGHBORHOOD One Los Angeles neighborhood, at least, offers something more colorful--and arguably better--than anything else in the U.S. It is the city s downtown area, better known here to locals as DTLA. APRIL 2017 LOS ANGELES NEW TECH SCENE FLOURISHES DOWNTOWN Digital-media hubs have sprouted up all over Los Angeles in recent years in areas such as Venice, Playa Vista, and Culver City. But now the city s downtown is also becoming a hot spot for a growing number of tech-minded firms. OCTOBER 2016 IT S OFFICIAL: WARNER MUSIC GROUP MOVING TO LOS ANGELES DOWNTOWN ARTS DISTRICT In a memo to staff on Oct. 7, WMG CEO Stephen Cooper announced the relocation to the downtown Arts District an up-and-coming area that boasts a burgeoning art, fashion, and food scene that s a magnet for businesses, entrepreneurs, and creatives... FEBRUARY 2016 ART SCENE HEATS UP IN DOWNTOWN LOS ANGELES While it s unlikely that Ms. Kardashian will be partying in the Arts District anytime soon, the art openings there have become a social circuit, with blue-chip galleries and adventurous collectors mixing with notable artists, newer spaces and assorted hangers-on. Downtown Center Business Improvement District 23

24 PLEASE CONTACT THE DCBID WITH ANY QUESTIONS YOU MAY HAVE. NICK GRIFFIN Vice President of Economic Development (213) ELAN SHORE Associate Director of Economic Development, Research & Special Projects (213) MICHAEL ASHKENASI Marketing & Economic Development Associate (213) EVENTS I MAPS & GUIDES I RESTAURANTS I RESEARCH & REPORTS