Grand Ave Gets a New Backer
DOWNTOWN LOS ANGELES — The Grand Avenue Project has new financial backing, according to a story posted today by the Downtown News.
Related will seek approvals from city, county and redevelopment officials over the next six weeks for the new investor in its proposed Bunker Hill mega-development. The company secured the new partnership with Istithmar, a sovereign fund controlled by the royal family of Dubai, after its key equity partner, California Public Employees' Retirement System, pulled out.
This is great news for the project given the state of the U.S. financing market. Back in October I was on a panel with Jim Anderson of Anderson Pacific. In response to an audience question Jim said that he simply didn't see residential projects getting funded in the next six to twelve months.
This sort of alternative financing is a great move to skirt around the whims of the money market. Ironically, a down market is exactly when you do want to be building. Given how cyclical housing is, getting started now means the project should come online right in the next upswing.
Update (7:45pm): Ironic that the cartoon in this week's issue portrays a deluded Related Co. going nowhere. Such is the timing of life at a weekly.
Urban Bruin on February 22, 2008, at 04:43PM – #1
Is this the beginning or the beginning of the end?
Tim Quinn on February 22, 2008, at 05:42PM – #2
This is amazing news. Lets hope this means no skimping on Gehry's design. Dubai means deep pockets and tall, tall buildings.
Paul on February 24, 2008, at 10:43PM – #3
That's great, we buy and burn oil from them and they turn around and invest in our real estate. I'd feel better about this project if it wasn't akin to a meth dealer buying his junkie customer's homes so that he can turn around and rent to them.