(Save the dates: RealShare Apartments East comes to the Hyatt Regency in Miami, FL, on February 26, and RealShare Los Angeles comes to the Hyatt Regency Century Plaza in Los Angeles, CA, on March 27.)
LOS ANGELES-While sources involved would not respond to GlobeSt.com regarding details of the deal, several industry sources familiar with the situation say that the Ratkovich Co. has completed its purchase of Macy’s Plaza in Downtown L.A. from owner Jamison Services Inc. Chris Wilson, founder and chairman of Wilson Commercial Real Estate, tells GlobeSt.com that the property has been sold, and while it was also rumored that Macy’s was not signed on as a continuing tenant, Wilson says the long-established retailer is not on the store closure list.
The plaza is surrounded by unadorned brick walls that truncate access to the street and vice-versa. Regarding the structure’s “fortress-like design,” Wilson says, “The building was built to focus on ‘in’ and not ‘out.’ No windows to the street, so I’m sure Ratkovich will be looking at warming the project to the street.”
Wilson also says that having Macy’s as a tenant will make the extensive renovations necessary to achieve that warming difficult for Ratkovich. “Macy’s is a huge issue. They are going to have to cooperate to get anything done. That could be tough.” Also, a parking structure sits on top of the Macy’s, creating more complications to renovation.
Industry reports stated in December 2012 that the Ratkovich Co. was in escrow to purchase the aging property and that president and CEO Wayne Ratkovich would likely launch a “major renovation” of the mall, office and hotel complex, which was built in the 1970s. The plaza occupies the block bounded by Seventh, Eighth, Hope and Flower streets.
Reports also indicated that Jamison had paid roughly $160 million for the property in 2005, and that the property includes the 487-room Sheraton Los Angeles Downtown hotel and a 24-story office tower, the latter of which Ratkovich is looking to reposition as creative-office space. Other reports state that the tower on Flower St. is currently 33 stories.
As GlobeSt.com previously reported, Wayne Ratkovich was listed as one of Southern California’s top real estate icons in the September 2012 issue of Real Estate Forum magazine. Click here to see the complete list.
Why do you think the parties involved with this deal were so secretive about its closing? Leave us your thoughts below.
On February 20, GlobeSt.com received this statement from the Ratkovich Co.: “The Ratkovich Co. does not comment on any potential deals or transactions until they are finalized. Mr. Wilson is not affiliated with the Ratkovich Co. or our partners, and the comments he provided for this article are conjectural and not accurate.”