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The Real Deal Los Angeles

Despite co-founder’s arrest, Charles Co. files new plans for District Square project

The company wants to build 573 rental units on Crenshaw Boulevard
By Natalie Hoberman | June 05, 2018 11:27AM

Mark and Arman Gabay, who was arrested last month; and 3670 Crenshaw Boulevard

With a top executive facing criminal charges, Charles Co., a developer based in West Hollywood, revised its plans for its District Square project once again, opting this time for more residential units in the mixed-use complex.

The amendment comes a few weeks after Arman Gabay, the firm’s co-founder, was arrested on federal bribery charges. Federal prosecutors say Gabay bribed a Los Angeles County official in exchange for business. It’s unclear how the legal troubles will affect the company’s proposed projects.

The family-run firm proposed Monday to build a total of 573 units at their mixed-use project near Metro’s Expo/Crenshaw station, according to documents filed with the Department of City Planning.

That’s a far cry from the original two-story, 300,000-square-foot retail center that was originally proposed in 2013. Target, Ross and Marshalls were all expected to open stores at the site.

Charles Co. later amended its offerings after an unknown anchor tenant pulled out. Instead, it filed plans in February 2017 requesting approval for 200 multifamily units.

The proposed project, at 3670 Crenshaw Boulevard, will also have grocery, retail and restaurant options.

Led by brothers Mark and Arman Gabay, Charles Co. is also behind the long-awaited Melrose Triangle project at 9060 Santa Monica Boulevard and an eye-catching circular hotel planned on the Sunset Strip.