Retail Figures Into $1.8 Billion Downtown Plan
The $1.8 billion real estate development, known as Grand Avenue, promises to give Los Angeles a vibrant, urban downtown similar to some of New York City’s best-known public spaces.
On May 23, city and county officials approved New York–based The Related Companies’ plans to transform Grand Avenue into something befitting its name. It’s already the address for landmarks such as Walt Disney Concert Hall and the Cathedral of Our Lady of the Angels. The plan would link these landmarks into a civic area that would also include 16 acres of park land and five high-rise buildings for condominiums, affordable housing and retail.
The area would be similar in spirit to New York’s Rockefeller Center and Central Park, according to philanthropist Eli Broad, who chaired the Grand Avenue Committee, which guided the project on behalf of the city and county of Los Angeles and the Community Redevelopment Agency.
“People are going to come here to celebrate New Year’s Eve and the 4th of July and listen to concerts,” Broad said.
The approved plan currently features 400,000 square feet of retail, and much of it should be completed by 2008, according to Related Companies Founder and CEO Stephen M. Ross. He said Grand Avenue’s retail should be similar to Related Companies’ Time Warner Center in New York.
Ross stated many of Time Warner Center tenants have already expressed interest in the Grand Avenue project, including fashion retailers such as Hugo Boss, Joseph Abboud, J. Crew and A/X Armani Exchange. However, the first phase of development probably won’t include much fashion; instead first-phase plans call for a grocery store, a bookstore and six restaurants.
Ross hopes the grocery store and restaurants will transform Grand Avenue into a consumer destination. Once destination status is established, Ross expects specialty retailers to move into the project.
The Related Companies’ architectural team includes luminaries such as Frank Gehry. The project is forecast to generate 25,000 full-time jobs during the construction phase and also will develop $565 million in direct and indirect business revenues to the city and county of Los Angeles. —Andrew Asch
