Let's re-cap this one: One Santa Fe is that Arts District project--a Michael Maltzan-designed, mixed-use residential rental complex that is planned for four acres of land near Sci-Arc. Early on, the project had some hiccups (locals complained about the size), but the development wound its way through the proper city channels and received entitlement this past March. Status? "We are still moving forward with the One Santa Fe project," writes Chuck Cowley, senior vice president at developer McGregor Co., in an email. He also forwards us the executive summary on the project--and it looks like they are still getting the money together. Where are those wealthy overseas friends to come help get our dreams of a Maltzan glo worm realized? UPDATED. See below.
From the executive summary:
"One Santa Fe, LLC is a joint venture between Goldman Sachs Urban Investment Group, The McGregor Company, and Polis Builders, Ltd. The Borrower is seeking a combination of construction and mezzanine financing of approximately $130 million (80% LTC) for the Project with a total development budget of approximately $163 million. One Santa Fe is designed as a mixed_use development consisting of 438 apartment units containing approximately 425,000 gross square feet and 351,000 net rentable square feet above approximately 76,000 net rentable square feet of commercial, retail and live/work space located at the street level. Approximately 800 parking spaces will complement these uses. Upon stabilization, the Project is expected to generate approximately $216.3 million in sales revenue and $53.8 million in profits, yielding a 29.8% leverage IRR and a 2.66 equity multiple."
UDPATE, Monday: 10:10 am: A slight mistake on the part of McGregor Company. Last week, a secretary in Mr. Cowley's office forwarded us the executive summary (that's an excerpt from it above), but Mr. Cowley tells us the information, notably the part about debt and returns, is at least 18 months old, isn't correct for today's market and "may not have even been correct when it was written 18 months ago."
As far as the financing: 'We are still talking to people about financing," said Cowley, who said the project is still estimated to cost in the $160 million range. Given the current financial markets, he said that the project could ultimately change. "We could go down the affordable housing route," he said.
And as far as design: He said that by about March 2009, the final designs should be done and will be submitted to the city's Building and Safety department for final approval. Ground-breaking is expected by next summer.
· City Council Approves Arts District's One Santa Fe [Curbed LA]
· One Santa Fe: Developer Weighs In [Curbed LA]