Related Cos. And Deutsche Bank Close On $630M Construction Financing For The Grand In DTLA
The recent closing of a $630M construction loan will push forward the construction and development of Related Cos.' Grand Avenue project in downtown Los Angeles.
Related announced last week the company had received construction financing from Deutsche Bank on the $1B The Grand, a Frank Gehry designed mixed-use development across the street from the Disney Concert Hall and the Broad Museum.
The Grand is a public-private partnership between Related, CORE USA and the Los Angeles Grand Avenue Authority, a joint powers authority composed of the county of Los Angeles, the city of Los Angeles and the former Community Redevelopment Agency of the City of Los Angeles.
“With the close of financing, the momentum on The Grand continues, and Related, the county, city and CRA/LA’s longstanding vision for Grand Avenue will soon become a reality,” Related Senior Vice President Rick Vogel said in a news release.
The announcement clears possibly the final hurdle for the development of The Grand and adds to the renaissance of mixed-use and other projects in downtown Los Angeles.
Vogel previously told Bisnow he wants this project to be "the cultural epicenter of Los Angeles."
Related officials said site preparation work will begin this month. A groundbreaking will be held most likely sometime in the next several months, the company said.
The $1B Grand will feature 215K SF of retail and restaurant space, a movie theater, a 20-story, 309-room Equinox Hotel and 436 residential units in a 39-story tower. About 20% of the residential units will be reserved for affordable housing.
Upon completion, the company said The Grand will provide thousands of jobs and is expected to generate $2.2M annually in county tax revenue.
“The completion of financing is great news for The Grand, Downtown Los Angeles and the millions of Angelenos and visitors who will benefit from this multi-faceted development in the coming years,” LA City Council member José Huizar said in a news release.
The Grand is expected to be completed in 2021.
