OverviewPressLinks Back to Press page Cozy Conversion Publish Date: 06/24/2002 The Next Level by ANDREA ROSAS Building from scratch maybe easier than converting an old building to a new use. But in downtown Los Angeles, where the streets are lined with historic structures that predate most of the area’s residents and workers, it presents a grand opportunity. Once-flourishing and still brimming with character, these 100 plus-year-old commercial buildings have sat mostly vacant for decades as developers focused on building downtown’s Bunker Hill nearby. That is all changing, though as developers save these structures and take on weighty task of turning these wide-open former manufacturing spaces into cozy residential loft spaces. “These old buildings are difficult,” said Mark Weinstein, president of MJW Investments, which is converting 10 buildings in the Fashion District into downtown’s largest mixed-use, mixed-income development. “You have to know what you’re doing because the more walls you remove, the more surprised you get,” Weinstein said. MJW’s Santee Court project will transform former manufacturing facilities into 600 loft apartments, shops and restaurants-an ambitious task, according to Weinstein. Although the city’s Adaptive Reuse ordinance has made the conversion process more developer-friendly, and potentially more profitable, Weinstein said the real challenge lies in making a former manufacturing space livable. Window Into Loft Design Experts agree that a building’s original character and façade can either make or break a conversion project. And for property owners, this means one thing: fitting the existing windows into a new loft design, Weinstein said. A good loft design uses the large windows typically seen in older, commercial spaces to maximize the amount of natural light in each loft unit. This can be tricky, Weinstein explained, when other design elements such as floor plans and the use of existing corridors factor into the equation. Most historic commercial buildings were built into the shape of the letter “E” or in the shape of a doughnut, with a corridor down the middle, according to Amy Anderson at the Los Angeles Conservancy. This gives both sides of converted into loft space, she explained. “At the time they were built, these buildings needed better access to natural light, so the buildings were designed with high ceilings and a floor plan that allowed increased access to heat and light, which now make the buildings very appealing as living space,” Anderson said. In some cases, adjustments have to be made during the design process to ensure that each and every unit receives natural lighting. Often, only the exterior units can use the large windows of the commercial space, leaving interior lofts in the dark. In these cases, the footprint of the building is too large, or perhaps more square than rectangular in shape, which means that architects have to cut into the interior of the building to use the floor plate and create a light well, according to architect Don Barany. To rectify this situation, Barany designs interior units to face a courtyard, exposing these units to the light, he said. Barany is working on the Irvine/Byrne building on Broadway and Third Street. Development of the project is scheduled to get under way in 60days. The building has many redeeming historical attributes that lend themselves to a successful conversion, including its original interior, transom windows, intact corridors and mostly intact construction and finishes, Barany said. “The biggest issues with these historical buildings are aesthetic issues, and whether the original part of the building is redeemable or not,” he said. “Every one of these buildings is different. They look different, have varying ceiling heights and different windows. The creative process is dictated by these and many other factors-and what you eventually end up with is something that has a different look and the appeal of something that is old and historic.” Adding Apartment Amenities Once the aesthetics are taken care of, the amenities become the next priority-and in the downtown area, that means parking- and lots of it. According to the Adaptive Reuse Ordinance, developers are no longer required to provide parking for their conversion projects. But, that doesn’t mean that property owners can eschew the immense need for parking-residential and otherwise. It simply allows them the freedom to be creative in how they meet this need. Most conversion projects have three options when it comes to parking, Barany said. Many times, property owners will arrange for tenant parking in an adjacent public parking lot, which is used for the city’s workforce during the day, but is empty in when residents make their way home. “You obviously need parking, so it takes some work to determine how you will meet this need,” Anderson said. “But in the best scenario, you’d be able to convert your building’s basement space into parking for your tenants.” Santee Court, which is expected to begin construction on the first phase in October, addresses these needs with a city-within-a-city approach. The 10-building project plan calls for converting alleys and tunnels into cobblestone pedestrian streets and includes parklike landscaping, shops and restaurants. “We’ll have a skywalk, bridges and landscaping, cafes and fountains… We can provide everything in one place,” Weinstein said. “Suddenly, in downtown L.A., you have an urban infill destination.” More Bang for the Buck Despite the challenges, developers agree that converting these old structures is cheaper in the end and can provide a higher return than new construction. The city of Los Angeles’ Adaptive Reuse Ordinance can take partial credit for that, according to Tara Jones, president and chief executive officer of Historic Consultants Inc., a company that guides property owners through the financing stages of these types of projects. Before the ordinance, property owners were required to provide tow means of fire exits in converted buildings, which often meant building an extra staircase, minimizing the developer’s return on the project, Jones said. Adopted in 1999, and revised in May, the Adaptive Reuse Ordinance was created to facilitate the development of a 24-hour downtown area by bringing residents and services to the city core. Before the ordinance was instated, many developers were reluctant to take on conversion projects because bringing historic buildings up to modern codes was too costly and time-consuming. But under the adaptive reuse guidelines, developers are given some leeway in meeting modern structural requirements while maintaining basic fire, seismic and safety standards, according to Hamid Behdad, project manager for Los Angeles’ Business Team in the Mayor’s office. “Some of these buildings have been vacant and a nuisance for years, and if it weren’t for the ordinance, I have no doubt that they would remain that way,” Behdad said. Jones also named the Historic Rehabilitation Tax Credit as a catalyst for getting many of these projects off the ground. If a building is certified as a historic structure, the developer can apply for a 20 percent tax credit on construction costs of a substantial redevelopment. Jones walks her clients through the time-sensitive, tax credit application process because the risk of missing the deadline is great. Missed deadlines mean that developers may not see a big return on their investment, she said. “the main goal is to make money on time and on a budget,” she said. “A developer will often tie up a building and start demolishing right away, and then they find out that they need approval from the National Parks Service, and they most likely lost the opportunity to take a tax credit. And if you miss it, it is a domino effect. By that time, they own the building and have to try and make the project work without a tax credit.” Weinstein, who used the tax credit, claims that the real payoff is creating an appealing space where people want to live. Industry experts agree that once these projects reach completion, there will be no shortage of tenants-mainly artist types, 20-and 30-something singles and young couples. A portion of Santee Court will provide affordable loft units to the work force community: county workers, police officers and teachers. Weinstein is confident that the work force housing and the retail space will be spoken for before the project is finished. “What it comes down to is this,” he said. “You have the choice of living in something with character and historic charm, or you can settle for a traditional apartment with four flat walls.”