As the residential real estate market continues to sag, the price tags are on the rise for the primo condos in Fifield Cos.’ and Raleigh Enterprises Inc.’s forthcoming 1200 Club View tower in Westwood.
The Business Journal previously reported that units at the 21-story Wilshire Boulevard tower would top out at $14 million, but a representative of the real estate firm selling the condos says the penthouse asking price now is $18 million.
That would make the penthouse the priciest condo ever in Los Angeles County, said Bill Schwarz, managing partner at Wilshire Realty, who is handling the sale of Club View units.
The project hit two other milestones last month: Construction began on Nov. 27 and the units were put on sale.
“There is large demand and we’ve been working off a list of really qualified buyers,” said Tim O’Brien, senior vice president and principal at Fifield. “We are even seeing one buyer that is coming in and wants two full floors.”
Despite the extremely high prices the average price of a Club View unit is $9 million Schwarz said that 14 sales are pending. The building, which is at Wilshire Boulevard and Comstock Avenue, adjacent to Beverly Hills and next to the Los Angeles County Club, is entitled for up to 35 units. Schwarz said that feedback from prospective buyers indicates that people are interested in larger units, making it more likely that between 25 and 30 units will be built.
Units are either in the 4,200-square-foot range or the 8,000-square-foot range. Lower floors will feature two units, and upper floors will include just one large unit.
“I have more people saying 4,200 square feet is not big enough,” Schwarz said.
The 8,328-square-foot penthouse will sell for $2,161 a foot.
While units at Beverly Hills’ Montage Hotel condos could sell for $3,000 a foot beating prices at Club View that project will not open until 2009, a year after residents move into Club View.
As construction moves forward, O’Brien said some changes have been made to the exterior of the building after consulting with neighbors. The penthouse has been redesigned with larger windows for better views and additional natural stone cladding will be added to the lower portion of the building.
“It’s a visual improvement to the building and more aesthetically pleasing for everyone,” O’Brien said.
Century City Lease
Law firm Klee Tuchin Bogdanoff & Stern LLP has signed a seven-year lease for about $6.36 million to remain in Century City.
Later this month, the firm, which specializes in corporate reorganization, will move from offices at the Fox Plaza building to its new 20,200-square-foot space on the 39th floor of the AIG SunAmerica Center at 1999 Avenue of the Stars.
The deal breaks down to about $3.75 per square foot per month.
The law firm considered moving to Westwood or Beverly Hills before opting to stay in Century City, said Mike Tuchin, a partner at the firm.
“We liked Century City a lot,” Tuchin said. “It’s where business that we do is located and we have people all over the city so it’s convenient for everyone.”
Landlord Equity Office Properties Trust represented itself in-house on the deal. The law firm was represented by Hunt Barnett of Madison Partners.
JMB Project
A high-rise condo development planned for Century City cleared a key hurdle on Nov. 29 when the Los Angeles City Council voted unanimously to approve JMB Realty Corp.’s $500 million project.
The twin 47-story towers and 12-story building will be built by Century City Realty LLC, a subsidiary of JMB, on a 5.5-acre piece of property adjacent to the corner of Constellation Boulevard and Avenue of the Stars.
“It’s a big step in the direction of creating a Century City that is more like a 24-hour city,” said Century City Realty vice president Bob Nowak. “It creates a space within an urban environment that is much more livable by people which in turn enhances the retail, office and other businesses within Century City.”
The towers will consist of for-sale residences and the 12-story building will feature “high-end lofts,” Nowak said.
Construction will begin at the parcel in the spring, and existing buildings at the property will be razed in the next few weeks. The first tower is expected to be completed in 2010 and the second will be finished at an unknown later date. The project was designed by architecture firm Johnson Fain Partners.
As part of the project, Century City Realty will establish a $5 million community fund.
South L.A. Parcel
A 21-acre parcel in the South Los Angeles area a rarity in that dense part of the county is on the block and receiving multiple looks by various entities. The industrial property on county land at 9901 S. Alameda St. adjacent to South Gate is owned by Warren and Sheldon Becker, who purchased it in 1979.
A variety of potential buyers are interested in the site, including big-box retailers like Lowe’s, housing developers, retail developers, a government entity, a college and a Chinese import-export firm.
“It’s one of the only large pieces left between downtown L.A. and the harbor,” said Warren Becker.
The property was put on the market in June without a price tag, but the asking price is now in the $38 to $42 million range, said Bradley Luster, co-owner of commercial real estate brokerage Major Properties, who is representing the sellers.
West of the property, South Los Angeles is being redeveloped, with areas such as the Crenshaw Corridor experiencing growth with new retail projects coming online.
Staff reporter Daniel Miller can be reached at (323) 549-5225, ext. 263, or
[email protected]
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