Downtown L.A. development in the pits

The large hole in the ground at the northeast corner of Main and 4th streets marked the site of yet another major residential project that promised to bring more people and energy to downtown L.A. But now that large hole in the ground is, well, just another hole in the ground.

Saeed Farkhondehpour, owner of the $125-million Medallion project, shocked the downtown development community by abruptly halting construction work on the apartment and retail complex, reports the Downtown News. He blamed weak demand and skyrocketing construction costs for prompting the delay.

"It's horrendous out there, absolutely awful," Farkhondehpour told Los Angeles Downtown News last week, referring to the retail and residential rental markets.

The Medallion is not the only downtown project to have been undermined by the sagging economy. Last month, the developer of the giant Grand Avenue development on Bunker Hill delayed the start of construction once again. However, as the Downtown News notes, it is rare for a developer to put a project on hold once construction has begun. In the case of the Medallion, work was well underway on a giant parking garage when the project was frozen.

At Main and 4th, a leasing sign still hangs on the fence surrounding the Medallion site. But downtown loft dwellers had better get used to the big hole. Farkhondehpour said it will be until the middle of next year before construction resumes if conditions improve.

-- Jesus Sanchez

Photo: Los Angeles Times

Comments

[Carolyn]

Maybe they could put the nice inexpensive parking lot back?

[Oh Well]

I guess no more 800.000 dollar loft I can't afford geeze thats too bad