Where There's a Wilshire, There's a Way
Business Corridor Gears Up for Half a Billion Dollars in Development

By Jason Mandell, Staff Report with Los Angeles Downtown News, Feb. 23, 04

As Downtown's Central Business District enjoys new housing projects and steady occupancy in its office towers, its neighbor to the west is set for a development boost as well. Wilshire Center, the two-mile business, retail and housing corridor bounded by Third, Eighth, Hoover and Wilton, is slated to undergo some major residential and commercial growth.

This year, construction is planned to start on at least half a dozen projects worth half a billion dollars. While the ventures will add to Wilshire Center's existing retail, they will also bring hundreds of new housing units. Area stakeholders say they hope the developments will attract new businesses, shoppers and residents from all over the city.

Gary Russell, an architect who is executive director of the Wilshire Center Business Improvement Corporation (BIC), said at least six large-scale projects will open in the next five years, marking a new era for the area.

"There's some movement here that we didn't see in the '90s," Russell said. "It's a very exciting time."

The corner of Wilshire and Western, already a buzzing intersection with the Wiltern Theatre and a Red Line subway stop, is the hottest spot in the district, with two major housing projects and 175,000 square feet of retail in the works. The former Getty Oil Company headquarters, built in 1963, is undergoing a $52 million conversion into 260 luxury residential units. Upside Investments, which owns multiple properties in the area, is developing the 22-story tower, whose apartments will contain 11-foot ceilings, hardwood floors, granite kitchen countertops and hotel-style limestone bathrooms. The rooftop on an added 23rd floor will feature a pool, spa, sauna, fitness center, garden, two conference rooms and a martini bar. The project will also include 25,000 square feet of retail space on two floors.

Gary Simons, CEO of Upside, said the building, dubbed the Wilshire at Western, is scheduled to open June 1, although pre-leasing is underway. Studios will start at $1,200, one?bedrooms at $1,500, and two-bedrooms at $2,000, said Simons.

Architecture and development firm Archeon Group is finalizing plans for another project at Wilshire and Western, a $55 million mixed-use development with housing, retail and public transportation. Firm president Christopher Pak said the project will include a new mid?rise building with 200 market rate apartments and 40 units designated as affordable housing.

Also planned are 50,000 square feet of retail. Pak said he hopes to lure national chains such as Jamba Juice and Pete's Coffee, as well as more of the small businesses run by immigrants from Mexico and Korea that are already prevalent in the Wilshire Center area.

"We think it'll be a good idea to be able to mix the two," said Pak.

The third element of the development is transportation. Pak said he has an agreement with the Metropolitan Transportation Authority (MTA) to build a multi-modal transit center with 12 bus layovers, drop-off spots for buses, shuttles and taxis, and a plaza. Pak said the aim is to create a facility that benefits the surrounding neighborhood.

"We're trying to create public transportation, but also an urban complex that fits into the context of the area and provides for the needs of the community," Pak said.

The development will be privately funded, except for a $1.2 million MTA and Community Redevelopment Agency (CRA) grant that will be used for transit amenities. Pak said his firm is finalizing an agreement with the CRA to break ground on the project. He said construction could start this summer, and will last 18 months.

Cultural Kick

A 100,000-square-foot retail and entertainment complex is also planned for Wilshire and Western. Young Choi, who owns the Woo Lae Oak restaurant chain, plans to develop a four-story project that could include one of her restaurants, a Japanese or Chinese bistro, bookstores and a three-screen movie theater, according to the Wilshire Center BIC's website. Russell said construction should start this year.

Two blocks down the street, at Wilshire and Hobart, planning is underway on another retail center. The site currently houses a five-story office building and parking structure, but development firm Accord Interests hopes to tear that down to build a two-story, 182,000-square-foot shopping complex. Karl Sternbaum, a principal at Accord, said he plans to infuse economic vitality into the area with big name businesses such as Target or Best Buy.

"We hope to attract national retailers back to the Wilshire Center, which they have abandoned for a number of decades," Sternbaum said. "We think that's what's missing in the market."

Sternbaum said the project has not yet received its entitlements. The first public hearing is set for March, and Sternbaum said he expects final approval in early fall. He said construction would start soon after and could finish by late 2005.

Jamison Properties, a major land owner in the Wilshire business district as well as Downtown, is undertaking a $22 million project on the northern portion of the block bounded by Sixth, Wilshire, Alexandria and Mariposa. Construction is slated to start in April on a 160,000-square-foot retail and restaurant complex, said Larry Schlossberg, a partner at Gruen Associates, which is designing the project. The development, dubbed Equitable City Center, will rise next to the Equitable office tower and will include 437 parking spots. Schlossberg said the three-story facility will feature soaring glass skylights and a multi?layered exterior. He said it could open in fall 2005.

The corner of Wilshire and Vermont is also slated for a major enhancement. Urban Partners, which is developing the new Caltrans headquarters and First and Main in Downtown, is building 450 housing units on a 7-acre property surrounding the existing subway stop. Dan Rosenfeld, a principal at the firm, said 20% of the units will be designated as affordable housing. Arquitectonica designed the project, which will also include 35,000 square feet of commercial space. Construction is underway and will finish in late 2006, said Rosenfeld. Also planned for the site is a new school to be developed by the Los Angeles Unified School District (LAUSD).

The historic Ambassador Hotel, a portion of which will be converted into at least two schools, could also include housing and retail. The LAUSD last year released five proposals for the construction of a high school, middle school and possibly an elementary school on the site, but the Los Angeles Conservancy is also pushing for up to 350 units of housing, commercial space and a memorial park for Robert F. Kennedy, who was assassinated at the site. Several community groups, including the Wilshire Center BIC, have also called for a park.

A decision on the entire development was expected last year, but now LAUSD officials say a plan will be released in the coming months.

Russell said a conference in October will provide a forum for community members, property owners and other stakeholders to discuss and plan future development in Wilshire Center.