It's been quite some time since we've heard a peep about the plans to redevelop the site around the old Desmond's department store building on Wilshire (across from the El Rey, at 5500). According to a press release and the Wall Street Journal, Ohio-based Associated Estates has picked up the building and a neighboring parking lot (2.21 acres total) for $37 million in an off-market deal. The parking lot comes entitled for a development and Associated plans to build "about 175 upscale apartments" called The Desmond on Wilshire. The Desmond's building and tower is home to (among other businesses) the Ace Gallery, which apparently has the option to buy it from the new owners. The D on W will cost about $70 million and include a parking structure; construction is set to start in spring 2013 with apartments ready to go in early 2014. The WSJ reports that rents are expected to start "around $2,600 per month for one-bedroom units and $3,300 per month for two-bedroom apartments," which is pretty upscale indeed. Coupled with the work going on down the street at Wilshire/La Brea, it just might be true that the Miracle Mile is bouncing back.
· Apartment Owner Associated Estates Enters Los Angeles [WSJ]
· Associated Estates Acquires Historic Wilshire Boulevard Property [PRNewswire]