TERMINAL ANNEX in LOS ANGELES, CALIFORNIA

Our Opportunity

The Ratkovich Villanueva Partnership, a subsidiary of The Ratkovich Company, was selected by the United States Postal Service to be its partner in entitling and developing the 500,000 square foot, historic Terminal Annex Building and the adjacent 18 acres of land in the historic heart of Downtown Los Angeles. The development strategy was to develop a master plan, the Alameda District Plan, in conjunction with Catellus Development owners of the historic Union Station, which would allow for an increase in density on the property. Once the entitlements were secured the property could be developed or sold to an entity wishing to develop the property further.

Our Investment

The joint venture appraised the entire property (including the Terminal Annex building) at the beginning of the process (in 1991) with a value of $20 million. The company was to share in the increase in value created by the vision of the master plan and the resulting entitlements.

The Results

The partnership secured the largest unanimously approved master plan in Los Angeles’ history allowing for the development of 3.4 million square feet of high density, mixed use development over the 18 acres. The joint venture sold the Terminal Annex building with an adjoining parcel for parking for over three times the appraised value of the entire 18 acres. The remaining land was sold as a headquarters site for The California Endowment, with a small parcel remaining in the USPS’s possession. In the end, the property valued at $20 million yielded an end value of over $51.9 million.