Related Companies today announced the closing of $630 million of construction financing from Deutsche Bank on The Grand, the Frank Gehry-designed, mixed-use development in Downtown Los Angeles on Grand Avenue across from The Broad museum and Walt Disney Concert Hall. The Grand, an approximately $1B development, is being developed by Related Companies and its partner CORE USA, a joint venture of China Harbour Engineering Company and CCCG Overseas Real Estate (CORE). Site preparation work will begin this month and a formal groundbreaking will occur in upcoming months. Deutsche Bank served as the Lead Arranger and Administrative Agent.
The Grand is a visionary public-private partnership, guided by the Los Angeles Grand Avenue Authority, a joint powers authority compromised of the County of Los Angeles, the City of Los Angeles, and the former Community Redevelopment Agency of the City of Los Angeles (CRA/LA), and will continue the resurgence of Downtown Los Angeles’ cultural and civic core, and become an architectural and cultural touchstone. The Grand will include a dynamic mix of retail, hotel, dining, entertainment and residential opportunities anchored by a central public plaza.
The 215,000 square feet of retail space will include destination restaurants and vibrant shopping spread among a series of landscaped open terraces along with a movie theater complex and a 20-story, 309-room Equinox Hotel®. The residential component will contain over 436 residences in a 39-story tower and 20% of residential units will be affordable. The Grand will generate broad community benefits, including an estimated 10,000 new jobs. “Today is an exciting day not just for Related and our partners, including CORE, Deutsche Bank and the Grand Avenue Authority, but for all of Downtown Los Angeles and the region,” said Rick Vogel, Senior Vice President of Related Urban, the mixed-use division of Related.
“With the close of financing, the momentum on The Grand continues, and Related, the County, City and CRA/LA’s longstanding vision for Grand Avenue will soon become a reality.” “I am pleased that The Grand has closed financing and we are moving to the next stage of this development,” said Los Angeles County Supervisor Hilda L. Solis, who also serves as the chair of the Los Angeles Grand Avenue Authority. “This project will create permanent jobs and build much-needed affordable housing in my district. With Frank Gehry’s visionary design supporting a variety of community-supporting mixed-use development, I am excited for the future of Grand Avenue and the larger neighborhood.” “The completion of financing is great news for The Grand, Downtown Los Angeles and the millions of Angelenos and visitors who will benefit from this multi-faceted development in the coming years,” said LA City Councilmember José Huizar.
“I want to congratulate Related, its partners, architect Frank Gehry and all our collaborators for their resiliency and belief in creating a project that benefits all Angelenos and is redefining what we can accomplish with a public/private partnership when we work together.” Upon completion in late 2021, The Grand is expected to generate $2.2 million annually in county tax revenue and will attract thousands of visitors from across the nation and around the world, along with downtown residents and visitors from other communities throughout the region.
"We are excited that this important milestone has been achieved,” explains Ken Himmel, CEO of Related Urban. “We look forward to celebrating with all of Los Angeles, as we commence construction on this dynamic, transformational project that promises to remake and enliven the Grand Avenue artistic and cultural center of Downtown.” The close of financing is the latest milestone achieved by Related in the Grand Avenue redevelopment which included funding and completion of the widely-heralded 12-acre Grand Park (completed 2012); the opening of The Emerson residential tower (completed 2014); and The Broad contemporary art museum (completed by The Broad Collection 2015).
ABOUT THE GRAND AVENUE PROJECT: The Grand Avenue Project is a visionary public-private partnership with the Los Angeles Grand Avenue Authority to revitalize downtown LA's cultural and civic core with a mix of commercial, retail, cultural and residential uses stitched together with great public spaces and world class architecture. This multi-phased master planned development is re-envisioning and re-developing underutilized government-owned parcels directly adjacent to the Civic Center and key cultural institutions such as the Music Center, Walt Disney Concert Hall, The Colburn School of Music, and the Museum of Contemporary Art to form a dynamic mixed-use district fitting for the cultural center of Los Angeles.
ABOUT RELATED COMPANIES: Related Companies is the most prominent privately-owned real estate firm in the United States. Formed over 40 years ago, Related is a fully-integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisitions, management, finance, marketing and sales. Headquartered in New York City, Related has offices and major developments in Boston, Chicago, Los Angeles, San Francisco, South Florida, Washington, D.C., Abu Dhabi and London, and boasts a team of over 3,500 professionals. With over $50 billion in assets owned or under development including the 28-acre Hudson Yards neighborhood development on Manhattan’s West Side, Related was recently named to Fast Company Magazine’s list of the 50 Most Innovative Companies in the World. For more information about Related, please visit www.related.com.
ABOUT CORE: CCCG Overseas Real Estate Pte. Ltd. (CORE), founded in Singapore in 2015, is a subsidiary of China Communications Construction Group Ltd. (CCCG). CCCG is a leading global integrated infrastructure service provider with business presences in more than 145 countries, ranking 103rd on the 2017 Fortune Global 500 list. CCCG has developed more than 300 million square feet of real estate assets valued at more than $28 billion. By virtue of its quality products, CCCG real estate has obtained a leading position in China's real estate industry. As the investment & management platform of CCCG’s real estate business, CORE is responsible for CCCG’s overseas real estate investment, brand promotion, and development management. With dual-headquarters in Beijing & Singapore, CORE has developed substantive business in North America, Southeast Asia, and Africa since its establishment.
ABOUT CHINA HARBOUR ENGINEERING COMPANY LTD.: China Harbour Engineering Company Ltd. (CHEC) was established in the 1980s and became a subsidiary of China Communications Construction Company Ltd (CCCC) in 2005. Recently, the CCCC is ranked in Top 100 as Global Fortune 500 Company and in top five of Top Global Contractors by Engineering News Record (ENR). Being a major operation arm of CCCC on international level, CHEC’s more than 80 branches and representative offices have a global footprint in over 90 countries with more than 15,000 personnel undertaking hundreds of international projects in the total turnover of USD 20 Billion. Providing full scope of services in relation to Engineering Procurement Construction (EPC) Contracts, Build Operate Transfer (BOT) Contracts and Public Private Partnership (PPP) Contracts for both public and private sectors, CHEC’s infrastructure portfolio covers not only the core business of marine engineering, dredging and reclamation, but also a diversity of works including roads and bridges, railways, airports, equipment assembly and other engineering fields relating to municipal, environmental and hydraulic services, power plant and resource exploration. Through our cutting-edge technologies, professionalism, resources and business promotion, CHEC is recognized as a world-renowned construction enterprise and has earned a reputation of excellence in its performance, quality as well as customer service.
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