(Save the dates: RealShare Apartments East comes to the Hyatt Regency in Miami, FL, on February 26, and RealShare Los Angeles comes to the Hyatt Regency Century Plaza in Los Angeles, CA, on March 27.)
CENTURY CITY, CA-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that the Los Angeles City Council voted unanimously this week to approve Next Century Associates' $2-billion transformative redevelopment project at the Hyatt Regency Century Plaza Hotel here. The project is expected to generate more than 3,500 construction and permanent jobs and substantially increase tax and sales revenues to the City.
Next Century Associates, owners of the hotel and leading the redevelopment efforts, is a partnership between Michael Rosenfeld's Woodridge Capital Partners and funds managed by Oaktree Capital Management L.P. Rosenfeld tells GlobeSt.com, “When complete, the new Century Plaza project will increase annual property and sales tax revenues to the City of Los Angeles from $6 million currently to approximately $36 million. In addition, it will generate $7 million annually in new revenue to the City.”
The redevelopment effort, expected to begin in early 2014, was the result of a multi-year collaboration between the developer, the City, conservation groups, neighboring homeowners and labor. The Council certified the project's environmental impact report and approved a 15-year development agreement for the 1.5-million-square-foot mixed-use development on the six-acre site.
Located at the intersection of Avenue of the Stars and Constellation Blvd. here, the project features two 46-story residential towers, a 100,000-square-foot retail plaza with shops and restaurants and more than 2 acres of public open space with fountains and courtyards. The hotel will be restored with 394 rooms and suites and 63 luxury residences.
Under the new plan, the hotel will reach out to Avenue of the Stars, and the project will connect more than 10 million square feet of office space, residences, restaurants and retail stores including the Westfield Century City mall. The plan also includes a proposed Metro station for the future Westside subway.
“Our goal was to create a pedestrian-friendly, transportation-oriented, sustainable mixed-use project that will serve the entire community, connect the elements of Century City and bring economic growth and jobs to Los Angeles,” noted Rosenfeld in a prepared statement.
Next Century worked with L.A. City Councilman Paul Koretz, the Los Angeles Conservancy, the National Trust for Historic Preservation, neighboring homeowners' associations, Century City stakeholders and organized labor incorporating input from all interested parties. The result is a project that received universal support with no public opposition.
As GlobeSt.com reported in August 2005, Sunstone Hotel Investors Inc. and Global Hyatt Corp. struck a deal to acquire the Century Plaza Hotel & Spa for $293 million before expenses and renovation costs. At the time, the San Clemente-based hotel REIT and Hyatt planned to reposition the property as Hyatt Regency Century Plaza.
What's your opinion on working with city councils to get redevelopments approved these days? Give us your opinion in the comments section below.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
