Cost for subway extension linking Westside to DTLA doubles to $3.2B

Third leg of Purple Line expected to be a boon to real estate development

Los Angeles /
Mar.March 01, 2019 02:00 PM
LA officials at a groundbreaking ceremony for the Purple Line Extension in 2014 (Credit: Flickr)

A potential real estate development boom for the Westside of Los Angeles from a new subway extension will cost twice as much as what was originally estimated.

The Metro Board of Directors approved a new $3.2 billion budget for the third leg of the Purple Line extension on Thursday, according to Curbed. That far surpassed an early estimate of $1.4 billion and an updated estimate of more than the $2 billion following the approval of Measure M in 2016, which funded transit.

The third phase of the extension stretches 2.6 miles between Century City and the Veterans Administration hospital in Westwood. In July, Metro signed off on a $410 million contract with construction firm Tutor Perini Corporation to dig the tunnels for the extension. Tutor Perini is also building stations for the project.

The entirety of the nine-mile long extension — from Koreatown to Westwood — will cost around $1 billion per mile, Metro staff told officials on Thursday. That would connect the Westside directly to Downtown L.A.

Around half the funding for the line would come from the federal government. It could be completed by 2026.

The Purple Line extension could be a boon for development in the area, which is characterized mostly by single-family homes. Both the city of L.A. and the state are pushing to incentivize dense development along transit lines. The city provides density bonuses to developers that build affordable units near transit through its Transit Oriented Communities program.

Governor Gavin Newsom also has plans to financially reward cities and counties that approve housing near transit, as well as hold back funding from those that don’t approve housing.

Not everyone is jazzed about the Purple Line though. A group of locals in Beverly Hills have fought tooth and nail to block a tunnel route that is part of Phase 2. [Curbed] — Dennis Lynch 


Related Articles

arrow_forward_ios
LuMar's Babak Nehoray with10756 W Wilkins Ave (Avvo, Labyrinth)
Developers plan five-story apartment building in place of single-family home in Westwood
Developers plan five-story apartment building in place of single-family home in Westwood
Pasadena mayor Victor Gordo and attorney general Rob Bonta (iStock, Rob Bonta, City of Pasadena, Illustration by Kevin Cifuentes for The Real Deal)
Pasadena withstands AG’s slings and arrows on SB 9
Pasadena withstands AG’s slings and arrows on SB 9
 1933 South Broadway (Loopnet, iStock)
Ara Tavitian scores $150M refi on The Reef in DTLA
Ara Tavitian scores $150M refi on The Reef in DTLA
East End Capital's Jonathon Yormak and David Peretz and the southeastern corner of South Alameda Street and 6th Street (East End, Google Maps)
East End Capital plans second studio complex in Arts District
East End Capital plans second studio complex in Arts District
Dollinger Properties' Dave Dollinger and Plaza at Golden Valley mall (Crexi, Getty Images)
$54M for Santa Clarita retail center
$54M for Santa Clarita retail center
1633 Victory Boulevard, Glendale and Senior Planner at City of Glendale Dennis Joe (Google Maps, LinkedIn)
New owner wants to enlarge controversial Glendale hotel project
New owner wants to enlarge controversial Glendale hotel project
80 South Street (Wikipedia)
Oceanwide Plaza in DTLA last U.S. project standing for China-based developer
Oceanwide Plaza in DTLA last U.S. project standing for China-based developer
Los Angeles mayoral candidates: Rick Caruso, Karen Bass and Kevin de Leon (Wikimedia, Rick Caruso, iStock)
Real estate industry all over LA mayoral money game
Real estate industry all over LA mayoral money game
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...