Wilshire Grand Mixed-Use Development

In support of the City of Los Angeles’ Chief Legislative Analyst, KMA was part of the negotiating team that created an assistance package for the hotel component of this large mixed-use, high rise project.   KMA conducted numerous market and financial analyses evaluating the feasibility of the office, retail and residential components of the project and structured a phased assistance program depending on how the project was phased.   Services provided by KMA included:

•  Market Research – KMA evaluated the residential and hotel markets to identify appropriate demand and pricing assumptions.
•  Pro Forma Analysis – KMA prepared a series of pro formas evaluating the costs, revenues and feasibility of the project.
•  Public Revenue Analysis – KMA prepared an estimate of the public revenues generated by the project, including TOT, property tax, sales tax, utility users taxes, parking taxes and business license fees.
• Public Assistance Structure – Based on the Project’s feasibility gap and estimated public revenues, KMA assisted the City with structuring a subsidy deal to promote project feasibility