HR&A prepared the economic analysis for a proposed mixed-use development that will result in the first new high-rise office building in downtown Los Angeles in more than 20 years.
For Hanjin International and Thomas Properties Group, HR&A prepared detailed economic and tax revenues analyses of a proposal to replace the existing, but obsolete, Wilshire Grand Hotel and office building in the Los Angeles central business district with a 2.4 million SF mixed-use development (a new 5-star luxury hotel, Class A high-rise office building, 100 condominiums and retail), which is being positioned to draw international businesses to downtown Los Angeles.
The financial structure of the subvention was approved unanimously by the L.A. City Council in March 2011.
HR&A’s analysis demonstrated to the City’s satisfaction that the project would generate sufficient net new revenues to justify a subvention agreement committing 50 percent of the project’s transient occupancy tax revenue for a fixed period of time to help render the project financially feasible. HR&A participated in working group sessions with senior City staff and the City’s outside real estate advisor to confirm analysis assumptions and results. Project construction is expected to commence in early 2012.