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Trouble with Grand Lofts

3691 Views 13 Replies 11 Participants Last post by  Chinere
I registered here to post the latest developement with Grand Lofts on the corner of 11th St and Grand Ave.

I might not work in downtown LA but I'm a student at the USC School of Architecture. I wanted to live in a downtown loft near campus and I had special interest in the Grand Loft property mostly because it's one of the few buildings that's adaptive reuse and actually a hard loft (unlike the new towers under construction that call themselves lofts). I looked at the property and went on all the hard hat tours the developers offered and put a deposit down on a penthouse unit that's 1551 sq ft. In January, we were told the building would be finished by June which would have been great because i could move in before the school year started. Well, nedless to say, we've finaly received our COO after nearly 5 months of delays.

The strangest part of the whole process was the last 3 weeks. We did our final walkthrough but the abnormal length of time before we were told we could close after the walkthrough was suspect.

To give you a little background on the project, the building does not rest on a parking structure or have a parking structure to support the 66 units. Instead, the property adjacent to the Grand Lofts property, now an empty lot used for the staging of the construction, was to be developed as a few stories of parking garage with a high rise conduminium on top. We were told we'd be given two parking spaces per unit when this property would be finished. Construction was supposed to begin once construction on the Grand Loft poperty has finished.

Just yesterday, after we had wired the final payment, we received a contract from Lee Homes that had to be singed, sent back and faxed back within a few hours. Hidden within this 200 page document were a few paragraphs that basically said - and i'll summarize here - we wouldn't be garunteed the two parking spaces we were told each unit would have and signing this document would release Lee Homes from any liability.

We learned that Lee Homes, who owned the property adjacent to the Grand Loft property, no longer own it. The person who owns the property now isn't required to build a parking structure there or if he did build one, parking for the 66 Grand Loft units.

Luckily, we were able to put a stop on our wire transfer and have since been trying to contact Jeff Lee, the head of Lee Homes.

In talking to our real estate agent, we discovered that since my unit was to be the first to close, we are the only ones to have seen this document, which is an agreement outside of escrow. We have started to contact all of the other 65 residents to notify them of this document and to decide on a course of action in the matter but one thing is for sure, without garunteed parking in downtown LA, a poperty's value will be greatly diminished.

I'll try to keep this forum updated on this issue if anyone would like it.
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man that sucks,so i'm guessing that you must be dissappointed now that you're not going to be moving into your unit. anyways i hope you guys can reach an agreement without having to go to court and both sides can agree to some type of reasonable agreement.

anyone reason as to why lee homes didn't own the land anymore,and also have you been able to talk to them?
We haven't been able to talk to Lee Homes and we don't know when or why they sold the other property. We haven't had enough time to contact everyone or find the info since all of this happened yesterday (saturday) and since it's Veteran's day weekend nobody is around. I should get a lot more information tomorrow.
best of luck to you with Lee Homes. I really hope you guys are able to work something out without having to go to court. Good luck in Architecture school too! talk about having enough to worry about.
Sorry you've run into trouble with Grand Lofts. A couple things you mentioned suprised me. I thought several people had already closed on their lofts. I'd had a deposit on a unit since March, and had been expected to sign the purchase agreement back in early September. I'd been told that I was one of the last. Assuming 30 day escrow, I'd figured many people had closed and moved in. Is this not the case?

Anyways, I had my own brand of trouble with the Lee Group. We'd gone on all the tours and met with the Sales Office staff several times. There were a number of issues with our unit we were unhappy with. We brought them up every week or two and kept getting told someone would get back to us. Before we signed the purchase agreement, I submitted an addendum itemizing all the issues we needed corrected before we'd close escrow.

Without any other response, the Lee Group canceled our reservation and returned our deposit.

This turned out to be a good thing for a variety of reasons. Your recent discovery adds another reason to that list, I guess.

I had started a website for future GrandLoft residents to get in touch with eachother. I'm going to post a link to this thread there. But you may want to start a new thread to try to get in touch with others.

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That's for the post Zach.

I'm sorry to hear about you having trouble with the Lee Group as well. Perhaps you were lucky for getting out earlier then this. We've already invested a good deal of money on built-ins for the loft that have been completed for some time now and have been waiting in a warehouse for this place to be finished. If things fall through at Grand Lofts, that stuff is too specific to our floorplan to work well anywhere else.

To answer your initial question, nobody has moved in yet.. I just did my final walkthrough on Wednesday and was told that my unit is the first unit closing on the property

Also, thank you for posting the link to the GrandLoft forums. I didn't know one was set up.
hey TrojanArchi, I'm sorry to hear about your difficulties. I'm a USC arch student too and I am also looking to close a deal for a place in downtown this summer.. it takes a lot of work!
Vidiot said:
hey TrojanArchi, I'm sorry to hear about your difficulties. I'm a USC arch student too and I am also looking to close a deal for a place in downtown this summer.. it takes a lot of work!
You and TrojanArchi are best friend. :D
my suggestion

confront lee homes asap. I've dealt with them before they are quick to response. I'm sorry if its true that parking has not been alloted to you yet.

Prior to our closing of escrow on flower street lofts we were handed out
all the necessarry document regarding our parking spaces and locations.

Jeff Lee is very professional.....That's really strange on why grand lofts will not have parking by the time of final escrow and move-in.

The city will not allow certificate of occupancy of the building.
luckyeight said:
That's really strange on why grand lofts will not have parking by the time of final escrow and move-in.

The city will not allow certificate of occupancy of the building.
We noticed it was taking an unusally long time to get the certificate of occupancy after we did our inital walkthrough. The building was pretty much complete but everything seemed to be standing still. What we've realised now is that the parking is what was holding up the certificate of occupancy.

The way I understand it, The Lee group has made an arrangement with the owner of the vacant lots of each side of the property to provide us with parking or a parking structure by 2008. Where is gets shady is where it says this agreement is between the Lee Group and this licensor and once the Lee Group closes the last unit, the property will be handed over to the homeowners association and the Lee Group will have nothing else to do with the property. Basically, the deal is with the Lee Group and once he give up the building, the licensor doesn't have to grant us parking anymore. It's a pretty shady way of getting the necessary parking to acquire certificate of occupancy.
wow... this is interesting news... and best of luck to both of u...

maybe this is an excuse for you guys to re-negociate for a lower closing price?
It's a shame you could not move in to Grand Lofts, with all the nice views and all the cool stuff. I think there's a thread with pictures on it.
If things dont work out

Hello there,

I'm sorry to hear about your troubles with Grand Lofts. We just put our loft on Flower Street for sale. If things don't work out with Grand Lofts, you might want to look ar our loft.
Grand Lofts Parking Issue

Hello, I am a Grand Loft "owner" who is relunctant to close escrow because of the parking issue. I have expressed my concerns with the staff, but no one has contacted me.

Trojanarchi, do you have any updates? Did you guys walk away from your investment or were you able to work out a deal with Lee Group?

I met a couple of owners who have actually moved in, and one of them was not aware of the parking issue. The other realized the issue after close of escrow. They plan to confront Lee Group about the "buried" language.

I also learned that now the HOA has to pay for landscaping the courtyard.

I was very excited in the beginning, participating in the hard hat tours, picking out cabinets, etc. I now feel like a victim of a bait-n-switch scam. :(
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