June 21 (Bloomberg) -- New York developer Joseph Moinian is marketing downtown Los Angeles land planned for a high-end retail, hotel and residential project.
Moinian Group, which bought the 4.5-acre (1.8-hectare) property in 2006 for $80 million from Anschutz Entertainment Group, has about 10 bidders and will choose within 30 to 60 days, according to a person with knowledge of the situation. The offers are for about $180 million, said the person, who asked not to be identified because the talks are private.
Moinian, who had planned to build a mixed-use development on 1.5 million square feet (139,000 square meters) at the corner of 11th and Figueroa streets, decided to abandon the project to focus on New York real estate, the person said. He’s planning to build a 66-story skyscraper in the Hudson Yards area on Manhattan’s far west side.
“We have long believed that this is the best development site in Los Angeles and are encouraged by the incredible interest we are receiving from the buyer community,” Joseph Moinian said in an e-mailed statement.
About half the bidders for the Los Angeles land are from overseas, including China and the Middle East, the person said. The project may be valued at as much as $900 million once completed, said the person with knowledge of the process.
Demand from overseas investors has been on the rise in downtown Los Angeles. MPG Office Trust Inc. this week completed the $367.5 million sale of Los Angeles’s U.S. Bank Tower, the West Coast’s tallest office building, to Singapore-based Overseas Union Enterprise Ltd.
A Ritz-Carlton located on the top floors of a downtown JW Marriott hotel has sold 85 percent of its 224 residential units, according to Jack Skelley, a Ritz-Carlton Residences spokesman with Paolucci Communication Arts. The remaining units probably will be sold by the end of the year, with “a huge share” going to Asian buyers, he said.
Downtown Los Angeles has undergone a revival since the late 1990s with developments such as the Frank Gehry-designed Walt Disney Concert Hall, the Staples Center sports arena and the L.A. Live entertainment complex, where the Ritz-Carlton and JW Marriott are located.
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