06-03-13

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LOS ANGELES

DOWNTOWN

40

C

NEWS Volume 42, Number 22

EBRATING EL

June 3, 2013

A Homeboy Comeback

Scary Camping

7

14

YEARS

Since 1972

W W W. D O W N T O W N N E W S . C O M

Downtown’s New $6 Million Strike Tired Little Tokyo Galleria Gets Perked Up With 24-Lane Bowling Alley and Huge Video Arcade

photo by Gary Leonard

The Little Tokyo Galleria has a high-tech tenant in X Lanes. by RichaRd Guzmán city editoR

F

or years, the Little Tokyo Galleria has been something of a gray elephant in Downtown. The massive complex at Third and Alameda streets is regularly derided for its insular, fortress-like design. Inside, it has long been plagued by empty space, with only a few shops, sushi spots and the cream puffs of Beard Papa’s drawing attention. Now, things are changing. X Lanes, a 50,000-square-foot bowling alley and entertainment center, opened May 17 as the centerpiece of an ongoing renovation. The $6 million at-

traction is the first major step in bringing younger customers to the 28-year-old mall. “Little by little, we’re turning into a location where more people will want to come,” said Jay Chun, CEO and director of operations of X Lanes. Like Lucky Strike at L.A. Live, which opened in 2009, X Lanes is more than just a place for bowling diehards to throw balls at pins. In addition to a 24-lane bowling alley, it has a 150-seat Italian/American restaurant, a sports bar, a ninetable billiard room, three private rooms for parties and a 100game video arcade.

Work on the bowling alley began about two years ago, following the 2008 purchase of the building by a group of Korean American investors. Although the structure had held a bowling alley when it originally opened, the buyers knew a repeat of the past was no guarantee of success. “Having just a bowling alley in this current economic situation wouldn’t make sense,” Chun remarked during a recent afternoon tour. “We wanted to bring a lot more.” Chun is running the venue with his younger brother Moses. He said that before the renovation, the space, which see Bowling, page 12

After Brookfield’s Big Buy, Now What? Trying to Gauge the Future of the Downtown Office Market by Ryan VaillancouRt staff wRiteR

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hen it comes to real estate, Downtown Los Angeles over the past decade has been almost synonymous with economic revitalization and growth, except within one key sector — office properties. As the housing market has skyrocketed, the number of restaurants, bars and stores has multiplied. Lately, a burgeoning trend of

new hotels has emerged. At the same time, the Downtown skyline has stagnated. Worse, some of its trophy buildings have seen vacancy rates increase. Vacancy in Class A office buildings — that’s most of the steel and glass towers on Bunker Hill and in the Financial District — has steadily risen from about 13% before the recession to 21.3% in the first quarter of this year, according to data compiled by brokerage firm Cushman & Wakefield.

Even the area’s marquee building, U.S. Bank Tower, has been unable to keep tenants. The tallest structure in the West is only 59% occupied. Additionally, there’s little evidence that a major growth spurt in the industries that fill the towers is on the cusp. Financial service companies, law firms and other whitecollar institutions are slowly rebounding, but they haven’t yet reached their pre-recession employment numbers, according to

data provided by the Los Angeles Economic Development Corporation. Despite the tumult, one key player is betting big that the Downtown office market has bottomed out and is poised for a comeback. New York-based Brookfield Office Properties last month announced that it has a deal in place to acquire what’s left of beleaguered MPG Office Trust, the former Maguire Properties entity that long ruled the skyline but has been slowly selling assets in an attempt to climb out of a sinkhole of debt (in March, it reached a deal to sell U.S. Bank Tower to a Singapore-based investor for $367.5 million). The deal would give Brookfield four propsee Office Market, page 10


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