‘Very Risky’
Even with the buzz that SBE’s involvement may bring to the Grand Avenue project, the complex’s success is far from assured. A slowdown of the local economy during its long construction timeline could hurt the development, as might its distance from the more popular parts of downtown Los Angeles.
“The key is demand,” said Richard Green, director of the University of Southern California’s Lusk Center for Real Estate in Los Angeles. “Large-scale developments are very risky because it takes a while to build them and nobody has perfect forecasting skills.”
Grand Avenue’s distance from livelier parts of the city’s core may pose a risk to the project’s success, Green said.
“The width of that avenue is not pedestrian friendly, and it’s isolated from other parts of downtown,” he said. “If you take the wrong turn walking, you end up in a place where pedestrians aren’t allowed. The lack of connectivity in this part of town is a challenge.”