L.A. Live Goes Forward
KB Urban is taking over the role of Apollo Real Advisors and Wolff Urban Management, which were bought out of the project last year.
The $2.5 billion L.A. Live project – an effort to revitalize Los Angeles as a home for conventions and similar tourism – has two phases. The first, to be completed next year, features the 7,100-seat Nokia Theatre, Club Nokia, a Regal Cinema Cineplex, restaurants, cafes and nightclubs as well as a Grammy museum to showcase the history of music.
KB Urban – a division of KB Home – is partnering with AEG to take over development and financing of the 50-story, 1,100-room hotel and condo project. It’s expected to include a minimum of 250 luxury residential condominiums and cost is more than $600 million.
Tim Leiweke, AEG president and CEO, said the pact will keep the L.A. Live development on track without additional public funding.
“This vibrant $2.5 billion, 4 million-square-foot development will establish once and for all that Los Angeles is the entertainment and content capital of the world,” Leiweke said in a statement.
The project’s future was in the air after talks involving Apollo and co-developer Wolff Urban Development reportedly broke off in December over the project’s price tag, which has risen from $450 million to the current cost.
The project has some controversy because $290 million is financed by city subsidies and loans, the Los Angeles Times said.