Los Angeles Business Journal
January 8, 2007
Sunset and Gordon
The Gerding Edlen Development Co. LLC is seeking entitlements this year to develop a mixed-use high-rise property on about 72,000 square feet of land at the northeast corner of Sunset Boulevard and Gordon Street in Hollywood. The project will provide the area with much-needed workforce housing, its boosters say.
Gerding Edlen bought 5925 Sunset Blvd. site in September for about $19 million from GTO Development LLC, which had planned to build a mixed-use development there.
In September, capital partner Genesis L.A. Economic Growth Corp. provided the project with a $16 million allocation from the New Markets Tax Credits program. Genesis L.A., a non-profit economic development company that invests in urban areas, has committed to using $30 million of its New Markets Tax Credits allocation for the project. According to Genesis, at least 40 percent of the units at the development will be priced at a workforce housing level at or below $410,000.
"The workforce housing is very much in our mission," said Brad Rosenberg, president of Genesis. "(It will) provide that part of Hollywood, which has many people who will have their own businesses, with workforce housing."
Tom Cody, principal with Gerding Edlen, a mixed-use urban developer, said that the economic impact of the project "will be over $500 million." In addition to condo units, the project will feature office space and retail space.
"It will be very catalytic to this area of Sunset Boulevard," Cody said. "The project is in its infancy and we have a long road to hoe in terms of entitlements." The company hopes to begin construction by early 2008.
The property is the site of the Old Spaghetti Factory building, which originally was the Los Angeles home of Columbia Broadcasting System. Some in the Hollywood preservationist community hoped to save the building, though it is not on any historic register, Cody said.
"It's our ambition with each and every project to approach it in a very collaborative manner. We want to optimize all of the opportunities presented in the project and to work to save all or part of the existing building," Cody said.
By DANIEL MILLER
Los Angeles Business Journal Staff