search

The Real Deal Logo

Trending

H-E-B snags 21 acres in Celina, hinting at development boomH-E-B snags 21 acres in Celina, hinting at development boomBanks settle with SF landlords rather than own vacant officesBanks settle with SF landlords rather than own vacant officesSL Green, Vornado kick in $100M to extend 280 Park loanSL Green, Vornado kick in $100M to extend 280 Park loanLawmakers reach sweeping housing deal with “good cause eviction,” new 421aLawmakers reach sweeping housing deal with “good cause eviction,” new 421a
Commercial
Los Angeles

Related may cut movieplex from its DTLA megaproject

Citing a “lack of interest by theater operators,” Related and CORE USA may use the space at The Grand complex as retail or office instead

A rendering of Related's The Grand project, and Frank Gehry, who designed it. (Credit: Getty Images)
A rendering of Related's The Grand project, and Frank Gehry, who designed it. (Credit: Getty Images)

Streaming services like Netflix and Amazon have upended the traditional movie-watching experience, and their emergence likely contributed to the change of plans for the $1 billion mixed-use development rising in DTLA.

Developers Related and China-based CORE USA are building The Grand, a hotel, condo, apartment and retail complex designed by starchitect Frank Gehry.

Now, the partners appear to be dumping the 44,000-square-foot movie theater, citing a “lack of interest by theater operators” and a shift in market demand.

Their latest design changes seek approval for retail or office space where the planned multiplex was going to rise. The Community Redevelopment Agency of Los Angeles will consider the proposed changes at its Thursday meeting.

Sign Up for the undefined Newsletter

“We want to negotiate with other potential tenants beyond the cinema,” said a Related spokesperson, who confirmed the filing.

The Grand — whose construction began in February — will include a residential tower with over 300 market-rate and affordable rentals, over 100 condo units, a 309-key Equinox hotel, along with 176,000 square feet of retail space, 12,000 square feet of restaurant space and a public plaza.

Instead of building a cinema at the corner of West 1st and South Olive streets, the developers are weighing two other options.

A retail and food and beverage component could be expanded, or office space could be added, said Rick Vogel at Related Urban, a division of the larger company. Both areas have shown interest from prospective tenants, including co-working companies, he said.

Related declined to identify potential tenants for the new space.

Tags
Related Cos.