L.A. high-rise construction set to begin soon after four-year delay

Posted by IronPlanet on Jul 9, 2012 1:57:00 AM

During the recession, many construction projects across the U.S. were canceled or put on hold, and one in downtown Los Angeles is getting back on track. Construction of a $125 million high-rise apartment building will start in September, according to Wood Partners, the developer in charge of the project. Planning for the 22-story building began back in 2006, but the project was snuffed out when the recession hit in 2008. Now, the Los Angeles Times reports the economic improvements have created a suitable environment for the project to be revived

Wood Partners is preparing to break ground on the 290-unit structure, which will be located on the outskirts of L.A.'s South Park financial district near the Staples Center. The contractor estimates leasing will begin by the summer of 2014. The building will feature a rooftop deck overlooking the Staples Center and an elevated pool area that can be accessed through a clubroom with retractable glass walls. The building will be outfitted with one- and two-bedroom apartments, each with its own private balcony. Wood Partners plans to mimic apartment layouts used in other high-rises the company has built around the nation, including a complex in Dallas and another located in Denver.

"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 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."

There will also be space for street level retail businesses, so the building will not only create jobs during its construction but also allow for sustainable economic stimulation. Wood Partners indicates a high-rise of this size can bring in more than 90 jobs, which is an added $6.7 million boost of income. The additional living spaces will also result in roughly $1.1 million in taxes and other revenue to the local area every year, according to estimates using data from the National Association of Home Builders.

As the economy improves across the nation, there are likely to be many opportunities when it comes to new structures being built. Contractors getting ready to begin new projects or those hoping to win bids on upcoming jobs may want to stock up on construction equipment like cranes, trucks and excavators so they are ready to jump on new project offers.

Topics: Construction, Industry Headlines