Los Angeles – Mack Urban and AECOM Capital, the investment fund of AECOM Technology Corporation (NYSE: ACM), have announced the acquisition of six acres of land in downtown Los Angeles’ South Park district located in the central business district (CBD).
Valued at more than $80 million, this transaction is the largest land acquisition, by acreage, in the CBD since before the U.S. economic recession began during 2008, noted Paul Keller, CEO of Mack Urban. The seller was EVOQ Properties.
“Mack Urban is building a portfolio of class A, institutional quality, highly amenitized multifamily residential developments in West Coast gateway cities. This acquisition of land in L.A.’s South Park is a major component of our plan,” said Richard Mack, CEO of Mack Real Estate Group. “Just as importantly, Mack Urban and AECOM believe that these buildings will provide a special investment offering for institutional investors, who are looking for long-term class A multifamily ownership opportunities in select West Coast urban markets. We are pleased that AECOM shares our vision, and we hope that this will be the first of many partnerships.”
John T. Livingston, chief executive of AECOM Capital, cited the ability of AECOM’s team to co-develop, invest in, and provide construction and design-related services for the development as one of the many ways that AECOM connects to its partners and clients with an integrated delivery approach. “We are excited to play such an innovative role in the development of this area of South Park, and to create a unique downtown community environment,” said Livingston.
“The project is expected to comprise multiple buildings and offer modern high-rise living with phenomenal views,” commented Keller, explaining that these apartments are expected to attract both young people as well as established professionals looking for an urban lifestyle and breath taking views in a desirable, walkable neighborhood. The studios are ideal for the suburban commuter who desires a landing pad during the workweek, he added.
The project is currently in the planning and design phase, and is being prepared for the entitlement process, with the initial groundbreaking expected in late 2014 and completion of final phases slated for 2024.
South Park ranks among the downtown area’s premier residential neighborhoods commanding top rents for new apartments and the most comprehensive set of lifestyle amenities, according to a recent RCLCO report. The immediate neighborhood encompasses 32 square blocks of residential properties and includes the most dynamic retail and entertainment venues in downtown, including the Staples Center and L.A. Live. The location of the new Mack Urban/AECOM Capital project is within a short walk of these amenities and adjacent to the Metro Pico Station.
Designed by the Los Angeles architectural firm, AC Martin Partners, this development’s ultra-sleek vertical towers will add a new dimension to the downtown Los Angeles skyline. The project will reflect the high-quality, best-in-class, multi-generation historical successes that are part of both Mack Urban and AECOM Capital, said Matt Burton, Mack Urban President/CIO.
Tishman Construction Corporation, a wholly owned subsidiary of AECOM, will be the construction manager of the project. Dan McQuade, chief executive of AECOM’s construction services business, noted, “We look forward to contributing to the continued revitalization of Downtown Los Angeles and building our first project for Mack Urban.”
About Mack Urban
Mack Urban is a premier West Coast real estate investment and development firm that owns, builds and manages environmentally sensitive, urban infill projects designed to preserve neighborhood character and strengthen communities. The firm focuses on long-term holdings, with investments in diverse asset classes including transit-oriented development, high-rise residential, mixed-use multifamily, adaptive reuse, and student and senior housing.
About Mack Real Estate Group
Mack Real Estate Group (MREG), founded by William, Richard, and Stephen Mack, is an enterprise devoted to managing the Mack Family’s capital, institutional capital, and high net worth capital through direct and partnership investments in real property and related securities. MREG brings together the expertise to recognize and analyze new real estate opportunities with the necessary speed and flexibility to maximize them, while retaining the ability to hold assets long-term and maintain hands-on management. MREG currently specializes in domestic and international real estate investment, development and financing opportunities. Currently, the company directly owns and manages approximately 6 million square feet of commercial real estate and real estate developments, and holds partnership interests in entities controlling in excess of 60 million square feet. Additionally MREG is the majority owner of Winthrop Property Management, which provides third-party property and construction management services to approximately 11,000 multifamily units and 10 million square feet of commercial buildings.
About AECOM Capital
With offices in New York City and Los Angeles, AECOM Capital was established in early 2013 with a focus on direct investments in real estate projects and public-private partnerships. AECOM Capital is a semi-open-ended fund with an initial funding from AECOM Technology Corporation of $150 million in AECOM Capital Global Fund I. In the first nine months of operation, AECOM Capital has closed on/or is in contract for approximately $1.0 billion, or 2.6 million gross square feet, of ground-up real estate development projects.
About Tishman Construction Corporation
Tishman Construction Corporation, a wholly owned subsidiary of AECOM founded in 1898, is a global provider of construction-related services, headquartered in New York City, with offices throughout the United States, the Middle East and Eastern Europe. Tishman is well known as the construction manager of Towers 1, 3, 4 and 7 at the World Trade Center; CityCenter in Las Vegas, the largest project ever built at one time in the United States; Epcot Center in Orlando; the John Hancock Tower in Chicago; and for building in excess of 450 million square feet of space in its lifetime. Daniel R. Tishman, representing the fourth generation of the family business, serves as the chairman and CEO of Tishman and vice chairman of AECOM.
About AECOM
AECOM is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental, energy, water and government. With approximately 45,000 employees around the world, AECOM is a leader in all of the key markets that it serves. AECOM provides a blend of global reach, local knowledge, innovation and technical excellence in delivering solutions that create, enhance and sustain the world's built, natural, and social environments. A Fortune 500 company, AECOM serves clients in more than 140 countries and had revenue of $8.2 billion during the 12 months ended June 30, 2013. More information on AECOM and its services can be found at www.aecom.com.
Forward-Looking Statements: All statements in this press release other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including any statements of plans for future operations, anticipated operating results, anticipated financial performance, consumer demand and confidence and market and industry trends. Actual results could differ materially from those projected or assumed in any of the forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others: local, regional, national and international economic conditions; fluctuating consumer demand and confidence; interest and unemployment rates; changes in sales and rental conditions; the impact of construction defect, product liability and home warranty claims; the ability of the participants in various joint ventures to honor their commitments; the availability and cost of labor and building and construction materials; the cost of raw materials; construction delays; and weather conditions. A more detailed discussion of these factors is set forth in AECOM’s most recent annual reports on Form 10-K, quarterly reports on Form 10-Q and other reports filed with the U.S. Securities and Exchange Commission. Mack Urban and AECOM do not intend, and undertake no obligation, to update any forward-looking statement.
Related Stories
Market Data | Nov 27, 2023
Number of employees returning to the office varies significantly by city
While the return-to-the-office trend is felt across the country, the percentage of employees moving back to their offices varies significantly according to geography, according to Eptura’s Q3 Workplace Index.
Resiliency | Nov 27, 2023
All levels of government need to act to cope with climate-driven flooding and sea level rise
The latest National Climate Assessment highlights the need for local, state, and federal governments to adopt policies to mitigate the effects of climate-driven flooding and sea level rise, according to a policy expert with the National Resources Defense Council.
Data Centers | Nov 22, 2023
How is artificial intelligence impacting data center design?
As AI is reshaping how we interact with machines and the world around us, the design of data centers needs to adapt to this fast-changing landscape. So, Page pairs expert thinking with high-performing solutions to meet the needs of rapidly advancing technologies.
Cultural Facilities | Nov 21, 2023
Arizona’s Water Education Center will teach visitors about water conservation and reuse strategies
Phoenix-based architecture firm Jones Studio will design the Water Education Center for Central Arizona Project (CAP)—a 336-mile aqueduct system that delivers Colorado River water to almost 6 million people, more than 80% of the state’s population. The Center will allow the public to explore CAP’s history, operations, and impact on Arizona.
MFPRO+ New Projects | Nov 21, 2023
An 'eco-obsessed' multifamily housing project takes advantage of downtown Austin’s small lots
In downtown Austin, Tex., architecture firm McKinney York says it built Capitol Quarters to be “eco-obsessed, not just eco-minded.” With airtight walls, better insulation, and super-efficient VRF (variable refrigerant flow) systems, Capitol Quarters uses 30% less energy than other living spaces in Austin, according to a statement from McKinney York.
MFPRO+ News | Nov 21, 2023
California building electrification laws could prompt more evictions and rent increases
California laws requiring apartment owners to ditch appliances that use fossil fuels could prompt more evictions and rent increases in the state, according to a report from the nonprofit Strategic Actions for a Just Economy. The law could spur more evictions if landlords undertake major renovations to comply with the electrification rule.
Codes and Standards | Nov 21, 2023
Austin becomes largest U.S. city to waive minimum parking requirements
Austin, Texas recently became the largest city in the United States to stop requiring new developments to set a minimum amount of parking. The Austin City Council voted 8-2 earlier this month to eliminate parking requirements in an effort to fight climate change and spur more housing construction as Texas’s capitol grapples with a housing affordability crisis.
MFPRO+ News | Nov 21, 2023
Underused strip malls offer great potential for conversions to residential use
Replacing moribund strip malls with multifamily housing could make a notable dent in the housing shortage and revitalize under-used properties across the country, according to a report from housing nonprofit Enterprise Community Partners.
Giants 400 | Nov 16, 2023
Top 100 Science + Technology Facility Architecture Firms for 2023
Gensler, HDR, Page Southerland Page, Flad Architects, and DGA top BD+C's ranking of the nation's largest science and technology (S+T) facility architecture and architecture/engineering (AE) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report. Note: This ranking factors revenue from all science and technology (S+T) buildings work, including laboratories, research buildings, technology/innovation buildings, pharmaceutical production facilities, and semiconductor production facilities.
Resiliency | Nov 16, 2023
How inclusive design supports resilience and climate preparedness
Gail Napell, AIA, LEED AP BD+C, shares five tips and examples of inclusive design across a variety of building sectors.
