A plan by AvalonBay Communities and Abode Communities to replace a Mid-Century Modern courthouse complex with a retail village in West Los Angeles may fizzle for lack of financing.
Los Angeles Councilwoman Traci Park has filed a motion to delve into the West L.A. Commons project at 1645 Corinth Avenue after the joint venture reported market conditions had jeopardized its financing, Urbanize Los Angeles reported. Its development agreement expired this spring.
The Virginia-based AvalonBay and Abode, based in Downtown L.A., had been tapped three years ago by the city and Los Angeles County to redevelop the 7.6-acre West Los Angeles Civic Center site in Sawtelle.
Plans called for 926 homes, 36,600 square feet of shops and restaurants, 76,341 square feet of city offices, a new Felicia Mahood Senior Center, 118,000 square feet of open space and parking for 1,500 cars. Some 431 apartments would be set aside as affordable.
But given current market conditions, the project may no longer pencil out, according to Park’s motion.
AvalonBay and Abode told the city in February last year that increased financing and construction costs had cut the projected return on investment for West L.A. Commons to 5.1 percent, from 5.98 percent.
Furthermore, the joint venture reported a “significant gap” in the project’s financing, which may jeopardize its feasibility.
The motion from Park requests a report from the City Administrative Officer within 60 days on the status of the project — including its design, financing structure and recommendations to resolve issues which may prevent the project from moving forward.
Her motion indicates that the CAO is already talking with the developers and city departments on new designs that could lower construction costs.
Park’s motion has been referred to the Trade, Travel and Tourism Committee for further consideration, according to Urbanize.
AvalonBay and Abode have already extended their development agreement with the city and county, citing challenges with financing the project and a hope that a delay would allow for market conditions to improve. That agreement, however, expired on March 22.
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Meanwhile, preservation groups have identified the West Los Angeles Civic Center as an eligible historic district, given its “eye-catching” Mid-Century Modern architecture.
The Los Angeles Conservancy has advocated for the adaptive re-use of the Civic Center’s 1960 Courthouse Building, 1961 branch City Hall/Municipal Building, 1962 Community Center (Felicia Mahood Senior Center) and 1965 Bandshell.
In late 2022, the county voted to buy the former West Los Angeles Courthouse at 1633 Purdue Avenue, within the civic center, “to incentivize development of affordable housing.” The state courthouse closed in 2013, and was put up for sale under a bill signed by Gov. Jerry Brown.
— Dana Bartholomew