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Park Fifth Announces New Money, But Is It Real?

By Eric Richardson
Published: Friday, January 29, 2010, at 02:07PM
Park 5th Model Dave Bullock []

This 14-foot tall model of Park Fifth was the centerpiece of the project's sales center in the Gas Company Tower.

One of Downtown's mega-projects seemingly rose from the dead yesterday, as developer David Houk told the Downtown News that his $1.3 billion plan to build two towers across the street from Pershing Square was on the verge of receiving new financing. The Park Fifth project would include both 76-story and 44-story towers, nearly 800 condos and a high-end hotel.

But is the project's new investor real? Real estate professionals that blogdowntown spoke to on Friday had mixed opinions on whether the leaked deal was legitimate and were skeptical of potential new investor Gabriel Hertzberg and his Triangle Investment Oil Company.

Hertzberg's aroused suspicion.

“We own oil in the Middle East and have the funding to get this project,” Hertzberg told the paper. “I will probably be the owner of the whole thing.”

He told the paper that he was currently transferring funds to U.S. accounts, and that the deal would be finalized in the next few weeks.

The oil company that Hertzberg runs was registered as a California LLC in January of last year. The address on record with the state points to a warehouse next to the Van Nuys airport, where either Hertzberg or a relative by the same name runs a company called Mobile Cardiac Imaging. The other contact address listed in state records is Hertzberg's home, located in the southern part of Beverly Hills.

Both the oil company and Hertzberg are almost non-existent online. The only mention of Triangle is on , a site that offers free profile listings. Neither Hertzberg nor the company show up in a search of Proquest's newspaper databases.

Even if Hertzberg does not have the money to fund the project himself, it is possible that he could be acting as a front for other investors. One source blogdowntown spoke to thought that unlikely, instead believing that Houk was trying to drum up interest in the parcel.

As for Houk, he declined to comment to blogdowntown on the potential deal, saying that it was "in the works," but "it's not real yet."

The project's last major news came in June of 2008, when it announced that it had completed entitlement and received a construction loan commitment from Beijing Construction Engineering Group. Just a few months later, though, news reports surfaced that major partner Namco Capital Group Inc. and its founder Ezri Namvar owed investors approximately $400 million. Namvar was accused of running a ponzi scheme as part of his investment business.

Even that wasn't the first time the project was dogged by funding questions. In November of 2007 the project denied reports that it had lost its main investor, and said that things remained on track.

While news of the project's restart would be welcomed in such a tough economic climate, Thursday's announcement serves to raise more questions than answers.

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Conversation

User_32

Tornadoes28 on January 29, 2010, at 03:15PM – #1

It will never be built.


Guest 1

Kip Nitrale on January 29, 2010, at 04:51PM – #2

It is a great location and I would love to see that area north and east of Pershing spiffed up a bit; however, the Park Fifth design has always seemed a bit overpowering for that spot in my view. I'd like to see a scaled down version, especially with the market such as it is. I have no doubt it will be developed at some point, but I certainly agree these near-term plans look pretty dubious.


Guest 2

Ken H on January 29, 2010, at 06:03PM – #3

I would be stunned if this deal is legitimate. I am very skeptical.


Guest 3

Jeff Alu on January 29, 2010, at 06:18PM – #4

I live in the Title Guarantee Building, the "tiny" building right next to where Park Fifth would be built. I'm lucky to have a view overlooking Pershing Square, folks on the other side of the building are going to get their views blocked if Park Fifth goes up. Part of me wants to see this built (the coolness factor is way up there for me, even during the construction process) and part of me doesn't, esp. the part that envisions tall Park Fifth breaking up during an earthquake and crushing poor little Title Guarantee. Silly maybe, but I can't shake the image. We'll see what happens...


Guest 4

Aaron on January 29, 2010, at 07:18PM – #5

Jeff, what views exactly do you think residents of an apartment building are guaranteed? Is that in the lease?

And I'm not just talking about for-lease buildings either. Why would anyone in Downtown expect that they'll have unobstructed views of anything? It's an urban area. A dense urban area. Full of parking lots that will eventually be built.

By the way, their views are of a crappy parking lot. They would be better off.


Guest 5

bc on January 29, 2010, at 07:44PM – #6

The Downtown News is very naive for picking up this story and running with it. I guess they can't be blamed because no one ever accused them of being journalists - they are downtown boosters. This project will never get built unless they find a billionaire who's looking to become a millionaire.


Guest 6

Juanito on January 29, 2010, at 08:24PM – #7

This news from Houk, coming simultaneously with that of the impending demise of the Pasadena Playhouse may not be simply ironic.

Does Houk still own the Playhouse? Are we being distracted here?

Perhaps we should begin calling this development Park Ponzi.

If the new investor truly has so many millions to toss around, he should wise up on the design, toss it down the trash chute and hire Herzog & de Meuron. The french duo have brio sufficient to design something far more auspicious, bright and astonishing enough to start a stampede from west of La Brea. That is what is sorely needed at that site.

As stated above, the larger tower of the present design overwhelms and obscures Parkinson's historic structure.


Guest 7

Max on January 29, 2010, at 09:19PM – #8

As for Houk, he declined to comment to blogdowntown on the potential deal, saying that it was "in the works," but "it's not real yet."

Then why did you, David Houk, leak word about it to begin with? You're doing nothing but setting yourself up to look very foolish, unethical and dishonest. After all, the previous investors were flim-flam men and if Gabriel Hertzberg is no better, you'll end looking like an even bigger flop and flake.

So until and unless you've gotten a 100% legitimate, iron-clad deal signed and delivered, zip your lips and avoid the spotlight.


Eric Richardson () on January 29, 2010, at 11:16PM – #9

Max: To be fair, there's nothing to say that Houk took the story to the paper.


Guest 8

Downtown Cowboy on January 30, 2010, at 07:00AM – #10

@bc: to be fair, blogdowntown never represents that this is going to happen. They're actually being responsible journalists by letting us know about conversations taking place, and identifying them as such. From the tone of the article there seems to be little belief on their part that this is going to happen. It would be cool, though, if there were someway this project (or, alternatively, a better designed project)could rise. It would really add to the energy of downtown.


Guest 7

Visitor on January 30, 2010, at 09:33AM – #11

I believe Mr. Houk owned the Pasadena Playhouse several years ago, before he declared bankruptcy and lost control of the property.

I wonder if Gabriel Hertzberg is scamming Houk? That would be very possible if it was Hertzberg who gossiped about his intentions in order to generate some publicity, arouse the interest and excitement of Houk and thereby set him up for easy pickings.


Guest 3

Jeff Alu on January 30, 2010, at 10:40AM – #12

Hi Aaron! I never said anyone was guaranteed a view of anything at all, just a simple statement that some of us who have a view will loose it. True, the view is of a parking lot, but it's not really about the actual view, but the openness created and natural lighting which comes through the window...things will, I'm assuming, be somewhat more dark and closed for these folks when Park Fifth is built. That's one of the things unique to this building, the open views. The single deciding factor for my moving into this loft is my amazing view of Pershing Square. It makes my tiny loft seem somewhat larger ;)


Guest 9

JDRCRASHER on January 30, 2010, at 11:38PM – #13

"Park Fifth Announces New Money, But Is It Real?"

I hope so. This would be a tremendous boost to Pershing Square and the Historic Core.


Guest 10

Jasmijn on January 31, 2010, at 08:13AM – #14

And the Pasadena Playhouse might be closing after all (but Houk doesn't own it anymore, does he?) -


Guest 11

LAofAnaheim on January 31, 2010, at 01:39PM – #15

People who move into a dense urban area...should not expect overlooking views. That's reserved for the hillside overlooking the downtown area. I wish the Market Lofts across from my building was taller...we'd have more residents walking the street and maybe more street retail! (more demand, that's why)

The view is a bonus, but is not a guarantee.


Friskie Buffet on January 31, 2010, at 06:39PM – #16

I love this project and hope that it gets built--in fact, I'd add about 10 more stories to the tower. Then, let's re-do Pershing Square to make it BEAUTIFUL in a classic style, like the way it looked before it was destroyed by the underground parking garage.


Guest 12

B on February 02, 2010, at 01:37PM – #17

This is another example of graphic design as architecture that continues to creep across downtown. It doesn't acknowledge historical context. It's also the type of project that works in a real estate bubble when people are obsessed with shiny stuff, not in a downturn when people are looking for tangible value. This won't happen anytime soon.


User_32

() on February 03, 2010, at 04:23PM – #18

If this does get built then money will be set aside to redesign Pershing Square. We'll see. But it's curious that some people think it is out of scale, considering that the Gas Company andUS Bank Towers, among the tallest in the US, are a block away.


Guest 13

Juanito on February 04, 2010, at 08:41PM – #19

Conceived at the height of the Po-Mo era, the massing, articulation and summit of Library Tower has become way archaic. The building shouldn't stand as the prominent civic symbol that it has become.

If Bert thinks that such extraordinary scale is proper so close to the square, then I would say that both the condominiums and hotel of Park Fifth should be combined into one single, gigantic tower, that it be set back as far as possible from the public right-of-way and that it's massing and fenestration speak very much to the future. Such a building could rise as high and put Library Tower to shame. Call Thom Mayne!

And frankly, I wouldn't want to be anywhere near 633 West Fifth in a major earthquake. Those joints are way too brittle. All those architects (in their designer bow ties) next door in the 444 Building will get one big surprise.


User_32

() on February 05, 2010, at 10:15PM – #20

The image above only shows the Hill St side of the project, but the 5th St side has a frontage no higher than the Title Guarantee Building next door, and about as high as the old Philharmonic Auditorium that preceded it. The tower IS in the back, away from the Square. IN addition, it is to the north of the Square, which casts no shadow on the Square. So what's the problem?


Guest 14

John Crandell on February 06, 2010, at 10:46AM – #21

The photo above shows the problem in all of it's contendable glory. Major question: why impinge into the Historic Core with such gigantic scale? This illustrates exactly why the Conservancy filed a lawsuit in the late Eighties against the developer, against a proposal then current. I feel that this proposal (of much larger scale) is an outright violation of the settlement of that lawsuit and why has the redevelopment agency laid down and played dead?

The top of the podium rises above, pays no heed to the cornice of Title Guarantee. Nothing wrong (in terms of urban design) with having a podium cover the entire site. But why should we tolerate such crass massing? Educator/architect Richard Weinstein has expressed his reservations and regrets over decisions in which he participated as a one-time official overseeing highrise development in Manhattan, that there was often a lack of urban design sensitivity. Here we have an illustration of his perspective.

I just feel that a single tower, located at the northwest coner of the site and having sculptural massing and far more expressive fenestration, could better point towards the future. The current proposal is ponderous, overwhelming and the fenestration derivative of works by Cesar Pelli . The bulk of the massing should be set towards Bunker Hill, rather than the Historic Core. Make it the most spectacular and enthralling structure on the west coast!

L.A. can do better.


Guest 7

Visitor on February 06, 2010, at 11:41AM – #22

"L.A. can do better."

Considering that Los Angeles remains a very suburban-oriented metro area, and that a lot of people and businesses associated with the city's prosperity remain hooked to communities over 6 miles to the west of downtown, a more accurate statement would be whether LA, referring to downtown LA, will ever be much better than a half-crocked version of almost any truly vibrant city in the world.

As for the Conservancy, they need to start making as big a stink about things like the dreadful parking lots throughout downtown, including the one that seems to almost encircle the Title Guarantee building and cheapens the nearby Subway Terminal building. An auto lot that probably will still be there several years into the future.


Guest 15

purple haze on February 06, 2010, at 08:18PM – #23

Oh, hell yeah! Get those civil servants at the CRA off their butts and turn all that empty asphalt into designer parking lots. Snide, unknowing vacuity knows no bounds in this town. The population density and human vibrancy between the 110 and whatever point six miles west is exceeded only on the island of Manhattan (within the U.S.). The idea of the metropolis as being three hundred odd suburbs in search of a city is so old and antiquated. Sounds like a recent arrival from Encino doesn't like the view out their window


Guest 16

Juanito on February 07, 2010, at 03:11PM – #24

The history of this very particular site was reflected in a superlative design entry to the 1986 Pershing Square competition. That entry was produced by a group of architects and landscapers headed up by William Morris, who has long since flown the L.A. coop and gained a measure of fame elsewheres. Their design gained only a runner up award, did not make First, Second or Third. The selection of the winning entry was one of the more infamous moments in local design history.

It was unfortunate that their entry wasn't given the light that it deserved. As a graphic presentation, as a work of environmental art and design, I still feel that it was by far the best of all entries early that summer season. Their work looked as if artist Isamu Noguchi had got together with director John Ford and sculptor Frederic Remington and they all tripped out on Twenty Mule Team Acid. It seemed to speak of the entire history of the Southwest: the Spanish/Sullivanesque Auditorium Building, of Ms./Mrs. Charles Fletcher Lummis establishing her menagerie while Charlie had his walk across the continent, all of the mining magnates gathered together to meet Winston Churchill in the California Club and of Remi Nadeau, his choice of Los Angeles rather than San Franciso to transship silver ores from Cerro Gordo - all a part of the historical loci - of this one place.

The seventy six story pancake design speaks nothing of these things; things that even Frank (to be frank) doesn't want to hear about. It's antisepsis bespeaks all of the soul and spirit of a wet mop. This point in time is similar to that sad time in the city spanning the riot of 1992 to the Northridge Earthquake and we so need something to lift the spirit and we now are in need of a developer with the right architect for this site, both with sufficient vision to counter the moment. I feel that we need a design that could do for Los Angeles equal to what composer Antonin Dvorak gave to the world with his New World Symphony. Something representative of what we are and may yet become.


User_32

() on February 07, 2010, at 07:58PM – #25

But what the proposed design does speak to is another aspect of Los Angeles history: the Case Study house. The floors are designed as a high rise equivalent of the indoor/outdoor lifestyle that made Southern California modernism famous in the 1960s. They all have ample patios and glass walls between the indoor and outdoor spaces.

Whether it actually gets built is another story, however.


Guest 17

Juanito on February 07, 2010, at 09:55PM – #26

Bert, a miniscule, glass-walled balcony six hundred feet above Hill Street isn't what I'd call an indoor/outdoor lifestyle. Antiseptic synopsis would be more like it and this isn't a dialectic regards a suburban lifestyle, our interaction with nature. Some day, super-strength glass and composite materials will allow for the weight of gardens high in the air. Until then, the most essential argument about Downtown concerns the continuing perfection in the quality of it's urban design. There is a distinct aesthetic and historical precedent for preventing gargantuan scale from intruding into the Historic Core of Los Angeles. Initiated over a century ago by architects Parkinson and Austin, that precedent is in need of a larger degree of respect.


User_32

() on February 07, 2010, at 10:18PM – #27

While I agree with preservation of existing structures, I disagree with most "scale" arguments. The empty lots in the Historic Core should be built tall. That's how cities work, and that's the best way to urbanize the center city. By bringing large numbers of people, the street is activated and energized. Cities are not museums. They are living organisms.

If I could afford it, I would be one of the first to live on the 59th floor of Park Fifth.


User_32

() on February 07, 2010, at 10:20PM – #28

BTW, the units do not have a "miniscule, glass-walled balcony". They have extended outdoor spaces (look at the model closely, that's what the white slabs are that extend outward). From what I understand, they are almost 1/3 of the size of the unit itself.


Guest 18

John Crandell on February 08, 2010, at 10:17PM – #29

FIFTY NINTH FLOOR!

Those are truly wings of desire, Bert.


Guest 7

Visitor on February 08, 2010, at 11:21PM – #30

The seventy six story pancake design speaks nothing of these things

Oh, for God's sakes. Just build the damn thing.

All this idle chatter about what would or would not be sophisticated, profound and appropriate, or hoity-toity, architecture at 5th and Hill Streets sounds like so much navel gazing from a bunch of folks sitting in a circle.

That's even more the case because Los Angeles's economy has become so wilted and gutted through the years (where did all of the city's Fortune 500 companies -- never a lot to begin with -- go?!? should we all snicker and laugh?), and has historically been more boondocks than big city in the field of highrise construction, that it will be a miracle if much more than a Taco Bell stand is built north of Pershing Square.


Guest 18

purple haze on February 08, 2010, at 11:41PM – #31

Rooftop hoity toity Taco Bell.

That may be something!


User_32

Downtowncommuter on January 29, 2011, at 12:30PM – #32

Jumping in the BlogDTLA time machine to point out...yeah, David Houk was full 'o crap and Eric got it right with the hed.



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