valencia group backs out of union restaurant deal
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Valencia Group’s highly-publicized fine dining venue, The Union Restaurant & Lounge — announced one year ago to fill the new Union Lofts’ commercial space — has been canceled, even though a long-term lease had been executed.
Property leasing reps today explain developer Meruelo Maddux is currently in negotiations with another restaurant to fill the 10,000 square-foot space of the old bank building, entailing the ground-level lobby and underground vault.
Though no details are being disclosed at this time, the lavish 1920s Art Deco lobby characterized by large marble columns and intricate wood detailing, would be suited only by a high-end establishment.
Killefer Flammang Architects handled the interior design of upper level lofts and is also responsible for conceptualizing the historic lobby-turned-dining room.
-union restaurant details released: historic setting, upscale fare
11 comments
Is this really a surprise? $20 this space stays vacant for a loooong time.
I am not that surprised either.
I hope Muerelo weathers this credit crunch. His company has lost quite a bit of money over the last year.
“Credit crunch” is a pretty optimistic assessment. Downtown will survive as it always has, but it’s not going to become the dreams of the developers (Live Urban just like Manhattan! … “7th Street Restaurant Row” … “Times Square West” … etc, etc, etc), or those looking for a cheap buy-in to a hoped for future Santa Monica promenade Broadway (Bringing Back Broadway!_
Until a skilled city planning commission steps up and makes some tough decisions about how best to plan a community that actually serves the community, downtown will be “developed” by those motivated primarily by profit and propaganda. People like Barry Shy and his poorly “rehabilitated” over-priced rental buildings. Bert Green and his throughly average gallery, and shills like Hal Bastian who sing the praises of granite countertops for a paycheck.
Watch more projects like the Union restaurant crumble in the next year, and more fabulous once-condo projects hang $99 move-in special signs, handing out leases to anyone capable of signing their name(s).
Lazlo, We’ll have to agree on what “loooong” means first but I’ll take that $20 bet.
Lazlo Toth pounded on Michaelangelo’s Pieta with a hammer. I think the guy has issues with success. Not a reliable predictor of much accepting his own pathetic intentions.
Jesus Lazlo. Troll much?
Hal and Bert do not deserve such criticism. Hal, through the years has probably brought thousands of people to live downtown. And, he’s been the biggest supporter for bringing more neighborhood amenities, while working to keep the soul of Downtown alive.
Bert, through ArtWalk, his gallery, and his perseverance is one of the reason’s why Downtown works, and a shining example of how small businesses are the key to downtown’s renaissance.
Barry - for as much as people complain…at least the buildings aren’t sitting vacant. I can’t complain much either…just moved into SB Manhattan.
This would have been the most beautiful and luxurious restaurant spaces in downtown. But way too ambitious and way too grand for the state downtown is in right now. I wouldn’t completely scrap the plans though. In another 10 years, maybe the space can support the type of clientele that would patron the place.
I agree dt, although I believe downtown can support a restaurant like the one proposed in union lofts. It has very nice restaurants already in patina, water grill, and a few other very very nice ones. It is just very difficult to get this type of restaurant off the ground, in this part of downtown, in this current recession, at this particular time.
The more ambitious projects located in the least gentrified areas of downtown will be at risk over the next 2-3 years. I hope Muerelo can keep building 717. I doubt he will be build any more towers for a very long time with the way his stock prices have gone. Also, union is not leasing nearly as quickly as he originally anticipated I bet. And at 550,000/unit in development costs, he is in a bit of trouble.
Anyhow, it will be a little rocky for awhile, but over time, all will be well.
It be great to see Colori move in and create something out of that space, ambitious but they do have a following.
“Also, union is not leasing nearly as quickly as he originally anticipated I bet.”
Here’s something that this blog’s real estate researcher, Stephen Friday, should look into and hopefully do a story on:
Union Lofts was listed as being around 17% leased 5 months ago. More recently, it was publicized as being 21% occupied today. That means the building has attracted only enough renters over 5 or so months to change the occupancy rate by 4%. Or about 10% per year, give or take a few percentage points.
If that trend doesn’t get any faster, or, worse, if it gets even slower, it will take at least another 8 years to fill up the Union Lofts.
I hope my math, assumptions or estimates are wrong.
Compare that with the corny, Mediterranean-looking apartment buildings that have risen west of the 110 and at the corner of Figueroa St and Chavez Blvd. Their Internet sales sites indicate very few of their apartments are available for rent at the moment.
Is it possible those apartments have moved quite quickly while another group of rental housing like at the Union hasn’t? If so, what does this mean for the owners of the Union? For the owners of other new or adaptive housing projects in the area?
We all know the pace of selling condos has dropped noticeably over the past year or more. If the same thing is happening to rentals, what impact will that have on the turnaround of downtown?
I always knew dtla would never happen. anyone who’s studied the history and development of los angeles knows that l.a. is not a centralized community! proved you wrong pete mcferrin! ROFL!
-*DTLA