Back From the Dead: Revival of Seven Stalled Downtown Projects Gives Some Hope, But Others Say Don't Call it a Comeback
LA Downtown News
By Ryan Vaillancourt
At first glance, the recent construction work on the Gallery Lofts in the Arts District seems fairly inconsequential. San Diego-based Pacifica Companies last year purchased the relatively small, stalled project previously known as Hewitt Street Lofts and began finishing the development.
Sales for the 33 condominiums at 120-130 S. Hewitt St. began last month. Prices start in the high $300,000s.
What makes the project worth a closer look is that it is not alone. In recent months, seven Downtown Los Angeles developments that were derailed by the recession have come back from the dead. From housing projects in the Arts District to a major mixed-use effort in Chinatown, construction crews are working and residents are being wooed.
"We like projects like Hewitt Street Lofts, where no one's really sure exactly what the status is with the courts, with how much work needs to be done," said Scott Russell, director of development for Pacifica, which is making its first investment in Downtown. "Groups like ours get in and roll up our sleeves and finish the project."
While some might view the jump in activity as a sign that Downtown is ready for another round of building, a spurt not seen since around 2003, others take a more cautious approach. Several trophy developments remain stalled and few new projects are getting off the ground. In short, a scattering of revived housing efforts shouldn't be mistaken for a robust recovery in the making, said Richard Green, director of the Lusk Center for Real Estate at USC.
"I think it sounds like some entrepreneurial people who are trying to time the market, but it's not large enough to call it a trend," Green said.