Although downtown Los Angeles now has more than 28,000 residents, there’s no traditional grocery in sight – which boosters have long decried as a brake on development.

But now a long-delayed upscale Ralphs is finally set to open in June, and the developer of the massive Grand Avenue project is in talks to bring a second market downtown. There’s even talk of a third market, although developers would not confirm that.

Related Cos. is currently negotiating with several different companies for a market in the first phase of its $2 billion Grand Avenue project, which received crucial approval last week from the City Council.

That second market is slated for a pad of up to 50,000 square feet at First and Olive streets, at the east end of the development. Bill Witte, president of Related of California, a unit of New York City-based Related, said negotiations are underway with several grocers.

“We are looking for a grocer experienced in dealing with an urban market,” said Witte, who added the area should easily be able to support two markets. “The more things that happen downtown the better.”

One downtown real estate expert said that Whole Foods Market Inc. is a likely candidate for the Grand Avenue market because Related worked with that company to bring a Whole Foods store to its Columbus Circle development in New York City. Witte declined to comment, saying Related is still “early in the process” of negotiations.

The Grand Avenue project is expected to open in 2011. It will feature residential units, office space and entertainment and cultural attractions.

The news of the grocery talks comes as the much-delayed Ralphs Fresh Fare finally appears close to opening, after numerous delays that made some doubt the project ever would come to fruition. Long championed as a key part of downtown’s revival, that supermarket is being built in the burgeoning South Park area.

The 50,000-square-foot supermarket is in the ground floor of Market Lofts at Ninth and Flower streets. The building includes 267 for-sale units and is being developed by CIM Group Inc. and Lee Homes Inc.

City Councilwoman Jan Perry, whose district includes much of downtown, said she was “thrilled” that the area looks in line to get another grocery store on the heels of the Ralphs.

“It means that there is enough (economic) activity that this area can truly support more than one grocery store,” Perry said.

Market economics

The lack of a downtown market has much to do with the fact that supermarket chains did not believe there were enough residents to support one.