Related Cos. announced Monday that construction is set to begin soon on the Grand, a Frank Gehry-designed complex in downtown Los Angeles, now that the developer had secured the final $630 million in financing needed for the $1 billion project.
Site preparation is set to begin this month and a formal groundbreaking will occur in upcoming months, according to the developer. German lender Deutsche Bank provided the financing.
“Today is an exciting day not just for Related and our partners, including CORE, Deutsche Bank and the Grand Avenue Authority, but for all of downtown Los Angeles and the region,” said Rick Vogel, senior vice president of Related Urban, the mixed-use division of Related. “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.”
The Grand will include 215,000 square feet of retail space, a 309-room Equinox Hotel, and 436 residences, 20 percent of which will be affordable housing units. The project is expected to be completed in 2021.
“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,” Los Angeles City Councilman Jose Huizar said. “I want to congratulate Related, its partners, architect Frank Gehry and all our collaborators for their resiliency and belief in creating a project that benefits all Angelenos and is redefining what we can accomplish with a public/private partnership when we work together.”
The Grand will be located between First and Second streets along Grand Avenue, and is being developed by Related Cos. and its partner CORE USA, a joint venture of China Harbour Engineering Co. and CCCG Overseas Real Estate.