Insider’s View of South Park - Interview with Justin Weiss, Kennedy Wilson Brokerage
In conversation with the affable, knowledgeable Justin Weiss, a commercial real estate broker at Kennedy Wilson Brokerage and personally serving DTLA for 10 years, we discussed upcoming properties in process or under contract in South Park along with his general take on the neighborhood.
Marty: I understand that you have many listings in South Park. Can you share what activity is taking place with the open retail spaces?
Justin: There is a lot happening in South Park. I am currently in lease negotiations with a trattoria and pizzeria on the ground level of Met Lofts on 11th St. A wine bar and café called “The Great Wine Station’” is currently under construction on Hope and 12th (next to Lagree 213) and is hoping to open before the end of the year. It will feature an award-winning sommelier from France who will serve excellent wines and charcuterie. A lease is being negotiated for a “heath food café” on Olympic and Olive (previously Starbuck’s), and for a new restaurant on Figueroa under the AC Moxy. The construction for a coffee house, slated for Grand and 12th, under G12 has been stalled, but hopefully it will get back on track. I am also talking with a specialty fitness tenant and a tasting room and bar to occupy some open spaces in that area.
Marty: What is your belief of what will become of the Oceanwide project? How may it be repurposed?
Justin: I believe the new owner will finish the towers and not demolish them. They will figure out a way to shrink the size of the units for more move-ins and more hotel rooms. With the Convention Center expansion across the street, there would be a need for (the originally planned), five-star Park Hyatt with 180 keys as currently the only other five-star hotel is The Ritz Carlton with 120 keys.
Marty: What are your thoughts about the economic investment in SP commercial and residential for the next three to five years? Why is it difficult for us to attract more restaurants in South Park?
Justin: There has never been that many restaurants in South Park. L.A. Live stalwart restaurants are still here. Prank, Pine & Crane, 33 Taps are all doing really well. I believe we need the right curation-owners that have the right concept to service the existing population as well as outside DTLA.
The business property owners need a far more reasonable expectation for rent to prospective renters, especially considering the economy (higher interest rates). Restaurants are experiencing a 30% higher cost to operate since the pandemic. City and state regulations have made it more difficult with labor, insurance, plus utilities costs being sharply higher. The restaurants are unable to pass all the increases to the customer. And there is about half as much office space being utilized.
Marty: What message would you like to say to South Park residents?
Justin: We at Kennedy Wilson are working hard. South Park was built from scratch. It started at Olympic Blvd, now that’s the 50-yard line.
In five-to-10 years, we will have 1,000s of more units and new hotels built. If we can get the political situation at hand, I have reason for long-term optimism especially with the Convention Center expansion and the upcoming auction-sale of the Oceanwide development.
DTLA should be a very different place in 2028-29. We have the World Cup, Super Bowl, and World Olympics all coming within the next four years. I hope we will see political changes including arrests as a deterrent to crime. Otherwise, if everything is the same as it is now, we are all screwed.
DTLA is a model of renaissance, which we embarked on in 2000. The model predicts that it would take 30 years to be a “world class city.” We are in year 24. With the setbacks from the pandemic, maybe we will be looking at 2032 or 2035!
By Marty Goldberg