Real Deal Link
"Greenland USA is seeking a buyer for one of its condominium towers at the Metropolis complex in Downtown Los Angeles, reflecting the firm’s growing troubles with the massive $1 billion development.
The company, the U.S. arm of Shanghai-based Greenland Group, also listed the 350-key Hotel Indigo in the same complex earlier this month."
With the recent news of Anbang being taken over by its regulator, does this hint at some trouble for some of the Chinese firms with massive overseas investments?
I believe so, I've been tracking the project and they seem to have been losing deposits + swapped the marketing company from DE to The Agency. I can't recall 100%, but I believe on the front end of the project there were a significant amount of block sales to overseas investors.
DTLA in general is just boring/programmed. How the project has even got this far is beyond me.
I would disagree that DTLA is boring / programmed. I would say outside of Echo Park / Silver Lake / Los Feliz, it has some of the most creative energy of any pocket in the greater Los Angeles area. Still, it has a long way to go from it's "daytime-only" reputation that it's had for the past few decades.
In this scenario, is there a possibility that Greenland or Next Buyer ends up selling the condos in a distressed sale scenario? The condominiums look fantastic, just not at that price range.
I believe they got funding from the Henry Group, a huge EB5 player. Mid year last year the Henry group pulled out of some big deals. China was really cracking down on their people bringing money here to invest in real estate.
I am pretty sure they are getting absolutely smashed. Heard through two reputable sources the project hard costs were way, way over budget. They supposedly did well on Phase I sales for the lower cost units, but many of the prime top of market units where a lot of profit is driven are still empty. Not going to get easier with Oceanwide Plaza delivering a better mixed-use program in a more fun part of South Park near LA Live.
Agreed. Outside of foreign buyers, anyone who can afford ultra-luxury condos would much prefer a house on the Westside.
Coincidentally, I'll be touring this exact project this week.
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