LOS ANGELES—Canyon Realty nears completion of its $160 million, Michael-Maltzan-designed mixed-use development in Downtown Los Angeles. Named after its arts district address at One Santa Fe Ave., the 510,000-square-foot property has dining, retail and art space along with 350 market-rate units and 88 affordable-housing units. GlobeSt.com sat down with Canyon Realty president Jonathon Roth to talk about One Santa Fe and the developer’s ongoing interest in California markets.
GlobeSt.com: Why was the downtown arts district an appealing location for this development?
Jonathan Roth: Canyon has been actively involved in Downtown Los Angeles for nearly two decades, having made significant investments in office, multifamily rental, condominium, land and mixed-use developments in that market. The arts district is a true live-work-play neighborhood with a strong existing resident and retail base, a low-density, vibrant architectural and arts scene, curated retail and urban authenticity that make it highly desirable. In fact, prior to One Santa Fe, Canyon invested 940 East Second Street—a condominium project located just two blocks away in the heart of the arts district.
GlobeSt.com: What demographic are you targeting for the property?
Roth: The demographic of One Santa Fe will reflect the diversity already represented in the arts district, and we expect it will include everyone from Gen Y’s to artists to couples and families, all of whom will be attracted to the neighborhood’s character, convenient on-site retail and amenities as well as its proximity to schools, including the new Mendez Learning Center, which is within short walking distance.
GlobeSt.com: What are the average rental rates for the units?
Roth: Like the neighborhood within which it is located, OSF will have a diverse offering of units including efficient studios, one- and two-bedroom units as well as larger units including two-story town homes. Rental rates will be set in the next 60-90 days when we anticipate the leasing office will open.
GlobeSt.com: Have you launched leasing efforts? When do you expect to reach full occupancy?
Roth: Retail and restaurant leasing is currently underway and is led by the Runyon Group. About 20 tenants are expected to make One Santa Fe their home over the next year. The tenant mix will be an eclectic collection of vendors whose concepts mesh well with the needs and culture of One Santa Fe and the arts district. Several key tenant lease announcements will be made shortly.
Apartment leasing will commence in June with the opening of the temporary leasing office across the street at 3rd Street and Santa Fe Avenue, and residents will be able to take occupancy starting later in the summer. Full occupancy is expected by the latter part of 2015.
GlobesSt.com: The company also recently invested in The College Terrace property. What is the company’s interest in investing in California?
Roth: Canyon has been headquartered ere since it was founded 23 years ago. This is our home. We have had a long and successful track record investing in California, having invested $728.8 million of debt and $627.4 million of equity in a variety of assets classes throughout the state. Canyon appreciates California’s extraordinary demographics, dynamic local industries, resilient economy and its strong educational institutions, which contribute to a highly talented and diverse workforce.