LosAngelesSportsFan
February 12th, 2005, 02:25 AM
Wow, south group is really pouring miney and time into South park. 2000 new units in the next few years! That whole area is going to be amazing.
he Rise of the 'South'
Developer Presents Plans for 2,000-Unit Housing Empire
by Kathryn Maese
A development group that is currently creating the first new ground-up Downtown condominium project in more than two decades plans to begin construction on two additional high-rise structures within the next year, creating a total of nearly 700 market-rate for-sale residences.
Tom Cody, a principal with South Group, is overseeing development of about 700 condos in three towers near 11th Street and Grand Avenue. Photo by Gary Leonard.
Once that is complete, then they'll really start to think big.
An official with South Group, which last year broke ground on the $65 million Elleven condominium structure at the southwest corner of 11th and Grand, told the Los Angeles Downtown News last week that the Portland, Oregon-based enterprise hopes to create 2,000 housing units in South Park. The company already owns the land where the projects would rise.
The move positions the firm as one of the biggest and most aggressive developers in the entirety of Downtown. The announcement follows the quick success of Elleven, where 172 of the 181 lofts have been reserved, even though the building will not open until the first quarter of 2006.
"We're set on a course to exceed even our own expectations," said Tom Cody, a principal with South Group. "In seven to 10 years it is our goal to be approaching 2,000 units."
The first cluster of buildings will rise in the area edged by 11th, 12th, Hope and Grand. The company plans to mastermind the neighborhood's residential identity by calling it "South." Each of the three phases is planned to begin six months apart, with all of them completed by 2007.
South Group is a partnership between Portland firms Williams & Dame, and Gerding/Edlen Development. Cody said the 13-story Elleven allowed them to test the market.
"So far we have been validated by the market demand and the eagerness of the buyers," Cody said. "The Downtown buyer has said not only are we ready for adaptive reuse, but we're ready for new construction."
Cody said the $80 million second phase, dubbed Luma, will be the "older sister" of Elleven, with a taller, slender and more sophisticated design. Luma is set to break ground in April, and will include 236 live-work condos with 10 two-story townhouses. The 19-story structure will occupy the southeast corner of 11th and Hope streets.
The final $100 million phase immediately south of Elleven will begin in September. The currently unnamed project will feature up to 350 condos and eight two-story townhouses in a 27-story building. This last phase, along with Elleven, will take up the entire block.
Cody said South will be dotted with cafes, retail stores and plazas that build street life and bring the condo towers down to a pedestrian-friendly level. The developments along Grand Avenue, for example, will be broken up with townhouses accessible from the street, while mid-block pocket parks will add greenery.
"The blocks are so big around here it's not really a friendly place to walk around," Cody said. "But one of the things that attracted us to the area is that there are so many parcels available for development that you can master plan and create something really special."
Thinking Big
While South Group is thinking big, the company has a track record of doing so. They recently created about 2,000 housing units in Portland's Pearl District, a once derelict warehouse neighborhood turned high-end mecca for galleries, clubs and restaurants. The group has another 3,000 units in the works for that city's South Waterfront District.
Along with the land for the first three Downtown structures, South Group owns two prime super-blocks immediately east of Staples Center between 12th, Pico, Figueroa and Flower. That property, which they acquired from Staples Center owner and LA Live developer Anschutz Entertainment Group, along with a collection of additional parcels, will be able to accommodate at least 900 residential units, said Cody.
Mike Pfeiffer, executive director of the South Park Stakeholders Group, said South Group's plans falls in line with the Downtown Strategic Plan, which envisioned South Park as the hub of residential life for the Central City.
"The plan identified several thousand residential units to be built in the South Park area," Pfeiffer said. "These developments are really fulfilling that vision."
South Group began testing the Downtown waters for investment opportunities in 2001, said Cody. He said that during an 18-month period, he and his partners watched land prices jump from about $100 a square foot to more than $300 a square foot.
There are now at least a dozen large-scale residential projects in the works in South Park, including several high-rise ground-up towers with even higher-end prices. Condos at the Flower Street Lofts, for example, have sold for $600,000 to well over $1 million.
The trend has been sparked by the proposed LA Live project, a $1 billion entertainment district surrounding Staples Center that would bring theaters, movie houses, restaurants and retail. A Convention Center hotel is also planned, though the City Council is debating how to fund it.
The anticipated amenities and growing demand for Downtown living have spawned a frenzy for the units, especially at South Group's Elleven project: They nearly sold out within two days.
Cody said he was surprised by the profile of his buyers, which showed that many are willing to pay more than half a million dollars for a home in the city, notably one with a South Park address and a view.
Although prices in his new buildings will reflect that increased demand, Cody said Downtown is still a relatively affordable option for many. "It is still a value play," he said. "It will not be that way forever. By the time we have a neighborhood with all the amenities, we will justifiably be able to compete with Silver Lake, Westwood and other high-end areas that are perceived as wonderful places to live."
Contact Kathryn Maese at kathryn@downtownnews.com.
he Rise of the 'South'
Developer Presents Plans for 2,000-Unit Housing Empire
by Kathryn Maese
A development group that is currently creating the first new ground-up Downtown condominium project in more than two decades plans to begin construction on two additional high-rise structures within the next year, creating a total of nearly 700 market-rate for-sale residences.
Tom Cody, a principal with South Group, is overseeing development of about 700 condos in three towers near 11th Street and Grand Avenue. Photo by Gary Leonard.
Once that is complete, then they'll really start to think big.
An official with South Group, which last year broke ground on the $65 million Elleven condominium structure at the southwest corner of 11th and Grand, told the Los Angeles Downtown News last week that the Portland, Oregon-based enterprise hopes to create 2,000 housing units in South Park. The company already owns the land where the projects would rise.
The move positions the firm as one of the biggest and most aggressive developers in the entirety of Downtown. The announcement follows the quick success of Elleven, where 172 of the 181 lofts have been reserved, even though the building will not open until the first quarter of 2006.
"We're set on a course to exceed even our own expectations," said Tom Cody, a principal with South Group. "In seven to 10 years it is our goal to be approaching 2,000 units."
The first cluster of buildings will rise in the area edged by 11th, 12th, Hope and Grand. The company plans to mastermind the neighborhood's residential identity by calling it "South." Each of the three phases is planned to begin six months apart, with all of them completed by 2007.
South Group is a partnership between Portland firms Williams & Dame, and Gerding/Edlen Development. Cody said the 13-story Elleven allowed them to test the market.
"So far we have been validated by the market demand and the eagerness of the buyers," Cody said. "The Downtown buyer has said not only are we ready for adaptive reuse, but we're ready for new construction."
Cody said the $80 million second phase, dubbed Luma, will be the "older sister" of Elleven, with a taller, slender and more sophisticated design. Luma is set to break ground in April, and will include 236 live-work condos with 10 two-story townhouses. The 19-story structure will occupy the southeast corner of 11th and Hope streets.
The final $100 million phase immediately south of Elleven will begin in September. The currently unnamed project will feature up to 350 condos and eight two-story townhouses in a 27-story building. This last phase, along with Elleven, will take up the entire block.
Cody said South will be dotted with cafes, retail stores and plazas that build street life and bring the condo towers down to a pedestrian-friendly level. The developments along Grand Avenue, for example, will be broken up with townhouses accessible from the street, while mid-block pocket parks will add greenery.
"The blocks are so big around here it's not really a friendly place to walk around," Cody said. "But one of the things that attracted us to the area is that there are so many parcels available for development that you can master plan and create something really special."
Thinking Big
While South Group is thinking big, the company has a track record of doing so. They recently created about 2,000 housing units in Portland's Pearl District, a once derelict warehouse neighborhood turned high-end mecca for galleries, clubs and restaurants. The group has another 3,000 units in the works for that city's South Waterfront District.
Along with the land for the first three Downtown structures, South Group owns two prime super-blocks immediately east of Staples Center between 12th, Pico, Figueroa and Flower. That property, which they acquired from Staples Center owner and LA Live developer Anschutz Entertainment Group, along with a collection of additional parcels, will be able to accommodate at least 900 residential units, said Cody.
Mike Pfeiffer, executive director of the South Park Stakeholders Group, said South Group's plans falls in line with the Downtown Strategic Plan, which envisioned South Park as the hub of residential life for the Central City.
"The plan identified several thousand residential units to be built in the South Park area," Pfeiffer said. "These developments are really fulfilling that vision."
South Group began testing the Downtown waters for investment opportunities in 2001, said Cody. He said that during an 18-month period, he and his partners watched land prices jump from about $100 a square foot to more than $300 a square foot.
There are now at least a dozen large-scale residential projects in the works in South Park, including several high-rise ground-up towers with even higher-end prices. Condos at the Flower Street Lofts, for example, have sold for $600,000 to well over $1 million.
The trend has been sparked by the proposed LA Live project, a $1 billion entertainment district surrounding Staples Center that would bring theaters, movie houses, restaurants and retail. A Convention Center hotel is also planned, though the City Council is debating how to fund it.
The anticipated amenities and growing demand for Downtown living have spawned a frenzy for the units, especially at South Group's Elleven project: They nearly sold out within two days.
Cody said he was surprised by the profile of his buyers, which showed that many are willing to pay more than half a million dollars for a home in the city, notably one with a South Park address and a view.
Although prices in his new buildings will reflect that increased demand, Cody said Downtown is still a relatively affordable option for many. "It is still a value play," he said. "It will not be that way forever. By the time we have a neighborhood with all the amenities, we will justifiably be able to compete with Silver Lake, Westwood and other high-end areas that are perceived as wonderful places to live."
Contact Kathryn Maese at kathryn@downtownnews.com.