CGI recently completed a six-part lot assembly in the desirable Koreatown neighborhood of Los Angeles. This area features a vibrant mix of dining, shopping, hotels, entertainment, and business activity. We closed escrow on the first five lots in May of 2017, with the closing of the final lot in August. The fully assembled site totals 46,305 square feet of land and spans a full city block with impressive street frontage on both sides. We plan to develop the larger site as two separate buildings and are pursuing the recently approved Transit Oriented Communities (TOC) development incentives to build 182 units on the site, of which 22 will be designated affordable. The final unit count and building size will be subject to entitlements received. We anticipate receiving all planning approvals from the City of Los Angeles in the fourth quarter of 2018, with Ready To Issue (RTI) permits expected to follow immediately thereafter.
In November 2015, we entered into a contract to purchase a development site located at 639 South La Brea Ave., situated just north of Wilshire Blvd in the heart of the Miracle Mile neighborhood of Los Angeles and adjacent to the future Purple Line Metro Station. After negotiating the acquisition of the Main Parcel, CGI entered into negotiations to acquire additional parcels to the south (contiguous with the Metro Station) and north.
• In June 2016, CGI entered into a contract to purchase an additional 9,752 sq. ft. of land to the south.
• In July 2016, CGI entered into a contract to purchase an additional 12,607 sq. ft. of land to the north for a total development site of 43,370 sq. ft.
Our vision for the property is to develop approximately 20,000 sq. ft. of ground-floor retail space as well as 200 residences over three levels of subterranean parking. This lifestyle center component will occupy the majority of the ground floor space and will feature an indoor/outdoor experience with vaulted glass and steel ceilings and warm inviting finishes. This blend of boutique shops and trendy dining to serve the residents and the local community. The central urban location adjacent to the future Metro station will provide an ambiance and culture that is critical to the success of this neighborhood. The level of design will surpass any retail experience in the immediate area to become an iconic destination. The blend of shopping and dining options will create an ambiance and energy that will demand a higher rent per square foot and superior overall economics.