Developer Had Vision of Miracle Mile’s Renewal

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Veteran L.A. developer Wayne Ratkovich has built his career by renovating old dilapidated buildings in neighborhoods he believes are on the cusp of change. So it’s not surprising that his Ratkovich Co. in 2005 bought a vacant high-rise at 5900 Wilshire Blvd. along the Miracle Mile. He spent $34 million to renovate it and then watched as media firms such as Variety Group have filled up the building amid a renaissance on the historic strip. Ratkovich, 70, has since shifted his focus to the Playa Vista area, but recently he talked with the Business Journal about his Miracle Mile experience and how he expects the neighborhood will evolve.

What did you see in the Miracle Mile?

We saw a well-established neighborhood that is among the most densely populated in L.A. with a great deal of history to the real estate. Very importantly, we saw LACMA directly across the street, the proximity to a midpoint between Westside and downtown, and the fact that it has accessibility to the airport.

How does the area compare to other L.A. neighborhoods?

Over the past six years, there are not very many places that have had a dynamic moment: a few on the Westside and some districts in downtown. But I don’t think you’ve seen rapid change many places in L.A. We probably have evolved in the Miracle Mile as well as anybody. With the growth of the entertainment industry, we measure up very well.

So what’s kept it from revitalizing sooner?

I have always believed that Wilshire is the grand boulevard of Los Angeles. I truly wish that that vision had been shared by our civic leaders. Over the years, we had the chance to create one of the grand boulevards in the world. It’s still a good one, but we could do things better. As Reyner Banham said: It’s the linear downtown of Los Angeles.

What still needs improvement?

The addition of more retail and food service. I’d like to see more urbanization so it’s a convenient place to live, work and shop. In a relatively short period of time you could do things at lunch like banking, and pick up drying cleaning and a (greeting) card for someone.

How does your work here compare to elsewhere?

Similarities are clear. We do take on troubled buildings; you don’t need us if you have a perfect building. In the case of 5900, there was no hot water, no heating and of 16 elevators only one worked. The building was similar to what we have in Playa Vista’s Hercules Campus, the former Howard Hughes building, which was essentially neglected for 25 years. They needed someone to believe in them and make something good out of them.

What is different?

They are completely different in terms of the type of space that they are. The 5900 is clearly a high-rise 30-story – a bit more conventional – but a lot of our tenants have done some pretty creative things with their office space. The ones in Playa Vista are single story, have very different structure, are individual free-standing and lend themselves to creative space.

Did you ever think 5900 might not work out?

Since 2007 or thereabouts, you had some of the most challenging markets that we’d had in a very long time. There were moments in there where we were worried, concerned and not sure about what was happening but we never lost our opportunities. It’s taken longer to get the building back to the condition we think it should be in, but we are getting there.

What is in store for the Miracle Mile in the next five years?

That’s hard to say because a lot of it depends on the dynamics of the economy. But fortunately, we do have part of the economy that’s doing reasonably well and we appeal to that. I don’t think it will happen overnight, but I think it will steadily climb to success over the next four or five years.

Are there other markets ripe for a renewal?

That’s why we invested in Playa Vista. I think (any new development) is going to stay close as it can along the coastline. I’m not sure it’ll go too far north. It’s going to go south along the coastline.

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