EXPO Line, The New Development Hotspot

David Waite is a real estate and land use partner at Cox, Castle & Nicholson.

LOS ANGELES—The EXPO line is officially open, allowing Los Angeles residents, for the first time in years, to travel from downtown to the beach without a car. The phenomenon is already having a major-impact on development with EXPO line-adjacent sites in high demand. The EXPO Town Center is one example of the transit-oriented development that is popping up along the new transportation line. The mixed-use property will feature 515 multifamily units, 200,000 square feet of office space and 100,000 square feet of retail. Cox, Castle & Nicholson real estate and land-use partner David Waite is representing the developer, the Martin family , and has a lot to say about the increase in transit-oriented development and the land-use practices that developers should know. Here, he sits down with us for an exclusive interview. GlobeSt.com: What is the vision of the EXPO Town Center Development project, and why is it so unique to the development trends in L.A. at the moment? David Waite: The vision for the Martin Expo Town Center (“METC”) is to create an iconic mixed used development project located in close proximity to the recently opened EXPO transit station at Olympic and Bundy. It is ironic, perhaps even prophetic, that a successful auto dealership owned and operated by the Martin family and woven into the fabric of the local community is now becoming a transit-adjacent destinational development site.  With 200,000 square feet of office space, 516 apartment units, and 99,000 square feet of community serving retail / amenities designed specifically for creative industry firms and workers, METC will accommodate the growth and expansion of Silicon Beach.  Located just a few short Expo Line stops or a bike path ride away from Silicon Beach, METC will allow firms to remain within close proximity to the startup ecosystem. GlobeSt.com: Transit-oriented development is still new to Los Angeles. What are the land-use challenges or differences to developing near transit? What do developers need to know? Waite: The goal of transit-oriented development is to make more efficient and productive use of land located adjacent to transit stations. In this case, adjacency includes development sites located within ½ mile of a transit station.  Transit oriented development is intended to reduce dependency on automobiles for residents, workers and visitors.  Transit adjacent development encourages healthy living by promoting walking, biking and ride sharing to and from the transit station.  Los Angeles remains an auto-dependent city for most of our residents.  The transition to a more transit-oriented city—at least in those locations where public transportation is available—will occur slowly.  Our development standards need to recognize that many residents, workers and visitors will continue to utilize automobiles as a primary mode of transportation for some time to come.  This means we need to continue to include ample parking to support transit oriented development sites, but as a matter of policy, we must begin to implement flexible reductions in code required parking standards to promote the use of transit.  Residents can be encouraged to eliminate or reduce their auto dependency by decoupling parking from standard residential leases in transit oriented development sites and giving residents a choice of whether they want to pay for parking. GlobeSt.com: How will the new EXPO line change the development landscape in Los Angeles? Have you already started to see shifts? Waite: Transit oriented development along the EXPO line, or any other transit line, has the potential to address a city’s affordable housing challenges and reduce traffic congestion.  Transit oriented sites are well suited to support mixed income residents with a healthy mix of market rate housing and affordable housing. The sites also lend themselves to higher density mixed use development, and with the combined benefits of office and retail development, they are supportive of local businesses who want their workers to spend less time in traffic and more productive time participating in the local community where residents live, work, learn and play. Santa Monica has an inflow of nearly 80,000 workers daily, and about 45,000 workers exit the city each day.  The EXPO line holds the promise to relieve some of the pressure on the areas congested freeways. But, this change will not happen overnight. GlobeSt.com: What has the reaction to the new line been like from your clients? The community? Waite: The reaction had been overwhelmingly positive.  The Los Angeles Planning Commission recently voted 8-0 to approve the METC project and the project will now proceed to final approval by the City Council and the Mayor.  Clients are showing increased interest in sites located adjacent to transit, and while the entitlement process and environmental review can be time consuming, local governments are embracing these types of projects as a means to address housing access and affordability and to promote less auto-dependent healthy living.  The City of Los Angles Planning Commission and Culver City also recently approved The Ivy Station located in Culver City at the intersection of Venice, Washington and National Boulevards. That project will include a five-story, 210,455-square-foot office building, a six-story hotel with 148 rooms, and a six-story apartment building with 200 units. Each of the three buildings will have shops and restaurants on their first floors, and combined, there will be 1,555 parking spaces. GlobeSt.com: Are projects like the EXPO Town Center the future of Los Angeles–an all-inclusive development? Are you helping to pave the way for other developers with this project? Waite: Los Angeles will continue to grow both internally and externally.  Our city will continue to see demand for single family detached housing product as the Millennial generation continues to move into higher levels of income and household formation.  Millennials choosing to work in Los Angeles and starting professional careers may initially seek housing options that are affordable and convenient—usually close to work in an urban setting.  Some (but certainly not all) from the baby boomer generation will downsize from the suburbs and also seek more urban lifestyles in retirement years.  Higher density, mixed income, transit oriented development provides a compelling model to serve the housing demands in our region for urban dwellers, but it is by no means the exclusive or even dominant housing demand generator in Los Angeles.  There remains a yearning by many to have a detached home with a backyard.  That yearning remains part of our housing DNA.