Minority Group to Develop Tallest Residential Building in Western U.S. as Part of a $1.2 Billion Project in DTLA
December 21, 2017
Angels Landing Partners, LLC, a team of three minority-owned real estate firms, has been selected by the Los Angeles City Council to acquire and develop the coveted Angels Landing site in downtown Los Angeles.
As part of its development plan for the site, the three-member team—which consists of the Peebles Corporation, MacFarlane Partners and Claridge Partners—intends to build the tallest residential building in the western United States.
“Our team is inspired by the great opportunity to transform the Los Angeles skyline with our iconic building, enhance residential life downtown, and forever change how large buildings are built in Los Angeles by insuring that all residents and businesses receive equal access to career and business opportunities,” said Don Peebles, chairman and CEO of the Peebles Corporation. “We are looking forward to working with the City of Los Angeles and their team, Councilmember Jose Huizar and the Chief Legislative Analyst, Oscar Ixco.”
Following the unanimous approval of the City of Los Angeles Economic Development Committee, the full City Council approved the approach proposed by the three firms for the 2.24-acre site, which is located at the northwest corner of Fourth Street and Hill Street in downtown’s Bunker Hill neighborhood.
The team’s development plan calls for the construction of two adjacent high-rises of 88 stories and 24 stories. The estimated project budget, including site acquisition, is $1.2 billion. Construction is expected to begin in 2021 and is estimated to take 41 months. Completion is anticipated in late 2024.
At a height of 960 feet, the 88-story high-rise will be the third-tallest building in downtown Los Angeles, after the Wilshire Grand Center (1,100 feet) and the U.S. Bank Tower (1,018 feet). It will be the tallest building west of the Mississippi River with a majority of its space designed for residential use.
“We join our partners in thanking the City of Los Angeles for their support of our team and our plan,” said Victor MacFarlane, Chairman and Chief Executive Officer of MacFarlane Partners. “Having invested in properties in downtown Los Angeles for the past 15 years, we are firm believers in DTLA and enjoy a valuable working relationship with Councilmember Huizar. Angels Landing gives us an exciting opportunity to broaden the transformational work we are doing nearby in developing the Park Fifth residential project and supporting the Pershing Square Renew effort.”
Ricardo Pagan of Claridge Properties commented on the award, “We are honored and thank the city of Los Angeles, Councilmember Huizar, the CLA’s office and the selection committee for supporting and entrusting us with the future of Angels Landing. We will remain committed to bringing forward a world-class asset to the city and provide opportunity and growth for Angelenos. Today’s vote marks an important day in the future growth of this city. Our team is grateful for being a big part of it.”
The winning plan aims to increase pedestrian flow and activity, engage the public, and activate the site and surrounding neighborhood. The proposed transit-oriented development will provide a better experience for Pershing Square Metro Station commuters as well as pedestrians by increasing accessibility to what has long been a steeply graded site. The two towers will share a three-story podium structure that, altogether, will consist of the following:
- 425 rental apartments, including affordable-housing units;
- 250 for-sale residential condominiums;
- Two hotels to be operated by SBE (a 289-room Mondrian hotel and a 192-room SLS hotel);
- Nearly 45,000 square feet of restaurant and retail space;
- A charter elementary school serving kindergarteners through fifth-graders;
- 50,000 square feet of publicly accessible open space, including a 25,000-square-foot, central outdoor gathering space for year-round events called “Angels Terrace”; and
- A mini food hall that will incorporate local businesses.
The project will target LEED-Silver certification, under the U.S. Green Building Council’s green-building rating system, upon the completion of construction.
The project’s design team is led by Handel Architects and OLIN, two global design firms recognized for their excellence and distinguished projects. Handel, which will oversee the design, recently completed Ten Thousand Santa Monica, one of the most critically acclaimed high-rises in Los Angeles. OLIN, best known for The Plaza at Santa Monica and ONE Beverly Hills, will handle the landscaping.
Angels Landing Partners is a synergistic collaboration between two of the leading minority-owned national real estate development firms in the country and a local, minority-owned real estate developer. The team is committed to a transformative inclusionary process by providing contracting opportunities for the project to minority- and women-owned businesses. Their goal is to exceed the M/WBE requirements and generate significant employment opportunities, with a focus on strengthening the middle class.
About the Peebles Corporation
The Peebles Corporation is a privately held, national real estate investment and development company specializing in residential, hospitality, retail, and mixed-use commercial properties. Founded in 1983 by R. Donahue Peebles, the company has become an industry leader with a portfolio of completed and current developments totaling more than seven million square feet and $6 billion in major cities including New York; Washington D.C.; Philadelphia; Boston; Charlotte; and Miami. It has a unique focus partnering with public and not-for-profit entities to redevelop underutilized assets into economically productive uses. A majority of its developments have been in public-private partnerships with state and local governments. For further information please visit www.peeblescorp.com.
About MacFarlane Partners
MacFarlane Partners is a real estate investment management and development firm that acquires, develops and manages properties on behalf of some of the world’s largest pension plans and institutions. Founded in 1987, the firm pioneered the urban investment concept among institutional real estate investment managers in the 1990s and today is a leading investor in and developer of properties that promote smart growth, urban revitalization and sustainability in urban and high-density suburban areas nationwide. It is headquartered in San Francisco and operates a regional office in Los Angeles. For additional information, please visit the firm’s website at www.macfarlanepartners.com.
About Claridge Properties
Ricardo Pagan is the founder of Claridge Properties, a 100% minority owned real estate investment and development firm. Mr. Pagan brings over 16 years of experience in real estate acquisition and development. Mr. Pagan is an established real estate developer, investor and operator with projects in Los Angeles, the New York City metro area, Detroit, Atlanta and Phoenix. Over the span of his career, Mr. Pagan has completed well over $1 billion in acquisitions and development of assets in his specified markets, encompassing more than 3,500 residential units and 500,000 square feet of office space. For more details please visit www.claridgeprop.com.
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