A proposed mega-development in downtown Los Angeles, which would replace a cold storage facility with a $2-billion residential and commercial complex, cleared a major hurdle last week when the city Planning Commission backed it.
Commissioners unanimously recommended the construction of Fourth & Central in the Skid Row neighborhood.
The 7.6-acre compound along Central Avenue that would contain apartments, offices, shops and restaurants in 10 distinct buildings of various sizes that would change the city skyline. The City Council will consider final approval later this year.
The project, which would be built near the neighborhood’s boundary with the Arts District, is being proposed by property owner Larry Rauch, president of Los Angeles Cold Storage. His family has operated food chilling facilities at Fourth Street and Central Avenue since the 1960s and plans to move the business to a new location.
In its place would be 1,589 rental apartments with 249 affordable units, along with 401,000 square feet of creative office space and 145,748 square feet of retail or restaurant space. The complex was conceived by Long Beach architect Studio One Eleven.
In response to changing market conditions and reactions from community members, a number of revisions have been made to Fourth & Central since the project was initially proposed in 2021.
The tallest building, an apartment tower, has been reduced to 30 stories from 44. With housing more in demand than lodging, the hotel originally planned for the project has been replaced by additional residential units, including more affordable housing units.
The open space design has been changed to create better pedestrian connections to the Little Tokyo Galleria shopping center north of the complex. The 2 acres of open space in the project will be accessible to the public, Rauch said.
Denver real estate developer Continuum Partners, which initially launched the project with Rauch, is no longer involved, Rauch said.
“Continuum has chosen to focus its resources elsewhere at this time; the Fourth & Central Project will be moving forward with LA Cold Storage at the lead,” he said in a statement.
If approved, it would probably take a year to 18 months to complete final plans for the project before starting work. Fourth & Central is moving through its preliminary stages at a time when many other developers have put residential projects in Los Angeles on hold because it’s difficult to find viable construction financing at current interest rates.
Many equity investors, such as pension funds and insurance companies, are also reluctant to park money in L.A. because the rapidly changing rules make it impossible to predict profits.
Among investors’ concerns are public policies such as the United to House Los Angeles (Measure ULA) transfer tax on large real estate sales, and also temporary limits on evicting tenants that were enacted during the pandemic.
“We’ve spent years working on our plan to transform this industrial property into a mixed-use community, which made it so rewarding to hear city decision-makers agree with our vision,” Rauch said after the Planning Commission vote.
Among the organizations voicing support for the project were the Los Angeles/Orange Counties Building and Construction Trades Council, the Downtown Los Angeles Neighborhood Council, the Little Tokyo Business Assn. and the Central City Assn.
“This project represents a significant stride toward addressing the region’s housing challenges,” said Nella McOsker, president of the Central City Assn. “Plus, the new retail and restaurant space will attract business and people to downtown.”
Fourth & Central is not the only mega project being planned on the east side of downtown.
In July, the City Council approved 670 Mequit, a $1.4-billion complex intended to have apartments, offices, a hotel, a charter elementary school, shops and restaurants. It is to replace a cold storage facility on the west side of the Los Angeles River with the mixed-use complex designed by Danish architect Bjarke Ingels Group.
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