Approvals pave way for more South Park condominiums.

BOTH the Los Angeles Community Redevelopment Agency and the city's Planning Commission have approved density bonuses for a two-acre South Park site, virtually assuring the go-ahead on construction of about 400 market-rate condominiums three blocks east of Staples Center.

With final approvals imminent, Portland, Ore.-based developer South Park RPO LLC plans to break ground on the first phase of the project by late summer, according to Tom Cody, a principal in the project and at Gerding/Edlen Development Co.

The project's first phase, at the southwest corner of 11th Street and Grand Avenue, is scheduled for completion in early 2006. Phase II, on the southeast corner of 11th and Hope streets, will be finished six to 12 months later.

Condominiums at the $85 million project will sell in the $300,000 to $400,000 range and average about 1,100 square feet.

"There is some affordable project available and some high end, but not a lot in this range," said Cody.

South Park RPO bought the site from an Anschutz Entertainment Group affiliate in December for an undisclosed price, though a source familiar with the deal said it was close to $9.5 million.

The project will be the first for the development team of Gerding/Edlen and Williams & Dame Development Inc. The companies have about 350 residential units under construction in Portland's downtown Pearl District.

The project adds to an increasingly dense residential market developing in a three-block section of South Park. A block south, Capstone Development Corp. is developing a 32-story student housing project and a block east, Lee Group and CIM Group Inc. are teaming up to build 66 condominiums.

Zero Sum

NetZero has signed a lease for 110,000 square feet at LNR Warner Center in Woodland Hills. The Internet service provider, a subsidiary of United Online Inc., is nearly doubling its facilities and will move from its Westlake Village offices.

John Sabourin, corporate managing director at Studley, who represented LNR landlord Lennar Partners, confirmed the square footage and said the lease length was "long term," but would not elaborate further. CRESA Partners' Carlo Brignardello, who represented NetZero, declined comment. NetZero officials did not return calls.

The deal, easily the largest in the West Valley this year, fills the recently completed 179,000-square-foot building at LNR Warner Center. ATK Missile Systems Co. occupied the balance of the building earlier this year. At the $2.11 asking rate for Class-A office space in the West Valley for the first quarter, a 10-year deal, with increases, could be worth well into the $30 million range.

The transaction continues positive leasing activity in the West Valley, where more than 325,000 square feet, or more than 4 percent of the area's inventory, has been pulled off the market during the past two quarters, according to Grubb & Ellis Co.

No Parking Zone

The developer of a proposed high-rise residential project at Wilshire and Hauser boulevards in Miracle Mile is planning a 63-unit apartment across the street.

Reliable Properties is developing the one-acre parking lot behind the office building at 5670 Wilshire Blvd. into a three-story apartment complex.

Reliable is nearing entitlements and wants to break ground on the project at the end of the year, said Jack Nourafshan, president of L.A.-based Reliable. Nourafshan, who declined to estimate the cost of the project, said it would take about a year to build.

Reliable had tried for three years to develop the 2.7-acre site one block west as a 900,000-square-foot senior independent and assisted living project. That project has now been downscaled into a 300-unit apartment project, Nourafshan said, adding that design standards for projects with nursing facilities made the original project cost prohibitive.

Executive Search Over

Korn/Ferry International is moving its headquarters to 1900 Avenue of the Stars from 1800 Century Park East, having signed an 11-year deal worth more than $15 million.

The deal marks a long-term commitment to Century City for the executive search firm, which will move to its new 40,000-squarefoot facilities in September. Korn/Ferry, which in 2001 toyed with moving to the downtown Gas Co. Tower from its longtime Century City base, opted to sign a short-term extension for its 51,000 square feet at 1800 Century Park East.

With the new deal signed, the 603,000-square-foot building at 1900 Avenue of the Stars is 97 percent occupied, according to Jeff Pion, executive vice president at CB Richard Ellis, who, with CB's Deron White, represented the landlord, John Anderson's Duesenberg Investment Co.

Staubach Co.'s Robert Chavez, David Kutzer and Christina Noonan represented Korn/Ferry.

Oversight

One broker was omitted from last week's item about ING's lease for 72,000 square feet at Pacific Corporate Towers in El Segundo. Studley's Craig Jablin also represented the tenant on the deal.

Staff reporter Danny King can be reached at [phone] ext. 230, or at [e-mail].