Second Phase of $145M Retail Project in Los Angeles Kicks Off

Sept 24, 2007
By: Barbra Murray, Contributing Editor

Midtown Crossing in Los Angeles moves closer toward completion as CIM Group Inc. commences the second phase of the $145 million retail project. The transit-oriented development will ultimately encompass 390,000 square feet in an area of the city that is sorely lacking retail options.

Located on a 12-acre site that was once home to a Sears department store at the corner of San Vicente Blvd. and Pico Blvd. in Central Los Angeles, Midtown Crossing opened the doors to its first phase in 2006. The property, designed by the architectural firm of Perkowitz & Ruth, currently features an incorporated bus terminal and 15,000 square feet of ground-level retail. Phase II (pictured) will add a 144,000-square-foot Lowe's Home Improvement center, as well as additional retail and restaurant offerings. Rudolph & Sletten is on board the project as general contractor, and construction of the second phase is on schedule to reach completion during the first quarter of 2009.

The mid-city section of Los Angeles lost its luster decades ago; the area surrounding Midtown Crossing is blighted and retail is scarce. "Conceptually, the project will serve multiple neighborhoods that have been underserved until now," Myron Sokolsky, a vice president with Grubb & Ellis, told CPN. "The area has really decayed over the years, so for it to come back refreshed and serve a legitimate purpose is great. It will be good for the neighborhood; it will clean it up and bring some legitimacy to it."

Headquartered in Los Angeles, CIM Group specializes in the development of mixed-use, office, retail, hotel and multi-family projects in high-density urban locations. "CIM are masters of this type of project," Sokolsky added. "The work they're doing in Hollywood, for example, is amazing. They continue to develop there and eventually they will override and create a reason to go to Hollywood Boulevard for entertainment and retail." The company has been in the process of converting a once unsavory stretch into a desirable destination by bringing in popular retailers such as the trendy Swedish clothing store H&M, which will soon open in a 10,000-square-foot space, and leading fashion retailer Zara, which has signed a lease with CIM Group for a 17,000-square-foot store on the boulevard.

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