LOS ANGELES
DOWNTOWN
NEWS Volume 41, Number 42
October 15, 2012
Downtown Living 9-20
7 25
The Civic Center ‘graffiti pit’ could see a brighter future as an extension of Grand Park. The Brewery Art Walk is coming: See artists’ creations, along with their personal space.
W W W. D O W N T O W N N E W S . C O M
BIG BITES, BIG PROFITS Downtown Gets a Wave of Huge Restaurants, Many With 200 Seats or More
photo by Gary Leonard
The 8,200-square-foot Le Ka, which opened last month, is the latest restaurant from Wokcano head Michael Kwan. It is one of at least seven big restaurants to open in Downtown within a year. by RichaRd Guzmán city editoR
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or the past five years, the family that owns Figaro Bistrot in Los Feliz has done a tidy business in the 2,500-square-foot spot. The restaurant draws a consistent, hip crowd seeking everything from pain au chcocolat to beef bourguignon. The intent will be the same this month when Figaro Broadway opens in Downtown Los Angeles. The scale, however, will
be drastically different: The $2 million restaurant will feature a 9,000-square-foot ground floor, an 8,600-square-foot upper level and seating for more than 500. The establishment at 618 S. Broadway will have patio dining, an on-site bakery, a bar, deli and a lounge with live music. It’s a massive space that needs a lot of traffic to make a profit. But Yoann Mgaieth, whose family owns both Figaros, thinks it’s just right. “The space is perfect for us,” said Mgaieth. “It’s such a nice
location and really big.” While at first glance Figaro Broadway might seem likely to dwarf its Downtown competitors, that’s not the case. In addition to attracting well-known chefs and adventurous diners, the Central City is luring culinary entrepreneurs willing to think very big. At least seven establishments with almost 6,000 square feet of space or more than 200 seats will either open soon or have come online in the last 12 months (see sidebar p. 23). see Restaurants, page 23
Rising Like a Phoenix From the Meruelo Fire Retooled Real Estate Giant Evoq Properties Tries to Turn Around A Failed Company by Focusing on Downtown by Ryan VaillancouRt staff wRiteR
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owntown Los Angeles has been home to numerous rise and fall stories, but few drew as much attention or saw as rapid a plummet as that of Meruelo Maddux Properties, Inc. and its politically connected cofounder Richard Meruelo. From the mid-1990s through the latter part of the last decade, the firm acquired an empire of Downtown development sites and industrial properties, from produce distribution complexes to apparel factories. It became the largest
landowner in the Central City. The potential seemed limitless, and after raising $400 million by going public in 2007, Meruelo, well known as a backer and friend of Mayor Antonio Villaraigosa, and co-founder John Maddux turned their sights to residential development. They spent $28.6 million to build out the Union Lofts, a 92-unit adaptive reuse project at Eighth and Hill streets. Then, they began work on a $110 million, 35-story South Park apartment tower, the tallest purely residential edifice in Downtown. They would never see the opening. By late 2008, MMPI
was suffocating under a mountain of loans it had used to buy property. Facing $368 million in debt as the real estate market settled into an unprecedented paralysis, the firm filed for bankruptcy in March 2009. The tower went bankrupt too; it would later be sold to Watermarke Properties. After a two-year court process, Meruelo and Maddux were ousted as part of a reorganization plan that allowed an outside investment group armed with $23.6 million in private equity to take a majority share of the company. New management was implemented, with Martin Caverly, who previously see Evoq, page 22
A unique combination of natural and organic products with the everyday brands you know. Amazing Fresh Produce • Full Service Butcher Block Deli • Bakery Vegan & Vegetarian Products • Cafe w/Free Wi-Fi • Wine & Micro Brews
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