Macy's Plaza Becomes "The Bloc

LOS ANGELES-Downtown retail here continues to make news, as the dowdy Macy's Plaza has been purchased for $241 million by the Ratkovich Co.

Ratkovich partnered with National Real Estate Advisors and Blue Vista Capital LLC on the purchase of the 1.8-million-square-foot site, which will be renamed “the Bloc.” Construction is expected to begin in the first quarter of 2014 and anticipated to be completed late in 2015. The property was originally built in 1973.

Macy's will be the anchor store for the Bloc, with an outdoor retail space featuring local boutiques, artisans, premier retailers and restaurants. The site currently includes a 33-story office building, a 23-story Sheraton Hotel offering 485 rooms, and a shopping mall that has 350,000 square feet on two levels, although one of the levels has been closed for months. The hotel and office tower will be completely renovated.

The mixed-use retail, hotel and office center is located at 700 Seventh St. and is bounded by Eighth St., Flower St. and Grand Ave. Current plans are to spend an estimated $160 million to renovate the entire property.

The Johnson Fain architecture firm has been named the overall project design lead. Studio 111 will design retail, and McCartan will redesign the interior of the Sheraton. EPT Design will handle all landscape and streetscape design, and Selbert Perkins Design will handle signage.

Wayne Ratkovich, founder and president of the Ratkovich Co., focuses on urban infill and rehabilitation projects. He previously transformed the Fine Arts Building and Oviatt Building downtown, and is also working on the Hercules Campus at Playa Vista, which includes the Howard Hughes “Spruce Goose” hangar, and the Alex Theatre in Glendale, among other projects. He was not immediately available for comment.

In a statement, Ratkovich said that his vision for the the Bloc site “is for it to become the destination in the heart of Downtown Los Angeles; a truly unique urban experience for residents, visitors and workers.

CB Richard Ellis (CBRE) brokers Jeff Pion, Deron White and John Zanetos are representing the Ratkovich Company on the office tenant side. Scott Kaplan, Richard Rizika, Erik Westedt, Mitchell Hernandez and Katherine Wilson are representing the retail tenant side. Richard Schell of Colliers International was the broker representing Ratkovich.

As previously reported by GlobeSt.com, the sale to Ratkovich Co. has been rumored for some time, with rumors swirling as to which stores would be included and the eventual shape of the transformed property.