Building Trades News

Union-Built RedBuilding to Add World-Class Office Space to West Hollywood

$195.5 Million Landmark Design Third and Final Phase of the Pacific Design Center In a joint press conference with the Building Construction Trades Council of Los Angeles and Orange Counties, on Feb. 22, Charles S. Cohen, owner/redeveloper of Pacific Design Center in West Hollywood, committed to the area craft unions to supply 100 percent union labor for the construction of the highly anticipated RedBuilding, the third and final phase of architect Cesar Pelli’s 30-year vision at Pacific Design Center. The $195.5 million 400,000-square-foot office project broke ground in March of 2007. “On behalf of the Building Trades Council and all of our affiliated craft unions, I would like to thank Charles Cohen for his dedication to ensuring that the quality jobs on this project go to the hard working individuals of the Building and Construction Trades unions,” said Richard Slawson, Executive-Secretary.  “We look forward to working with you to make this another landmark for the city of West Hollywood.  The RedBuilding at the Pacific Design Center is an extraordinary project that will require a high quality of skilled labor and finite attention to details. These are services which we are perfectly suited to provide,” he added. “The Building Construction Trades Council of Los Angeles and Orange Counties recognizes that the extraordinary scope and scale of the RedBuilding project will be a key economic engine for creating good jobs in construction and related occupations in West Hollywood,” said owner/developer Cohen. “New jobs will translate into economic and social gains for the community. Working with the labor union[s] guarantees us higher quality workmanship and a sense of timeliness in keeping the project on track with specific deadlines and target dates.” Cohen is President and CEO of Brothers Realty Corporation which develops, owns and manages 12 million square feet of premiere office space through out the United States. Since the 1990s he has invested over $40 million revitalizing the Pacific Design Center. “We are very excited that Charles has decided to use 100 percent union labor in constructing this project,” said West Hollywood Mayor John J. Duran. “It sets the tone for all of Southern California.” The project is being funded with a $150 million loan from ULLICO Inc’s “J for Jobs” investment program. ULLICO is the nation’s only fully-unionized, provider of multi-line insurance, financial services and administrative products. The program was created in 1979 as means to create safe investments for union pension funds, according to Frank Kao, Senior Regional Manager of ULLICO’s Real Estate Investment Banking Group. The program provides short term construction loans that range from 18-36 months. “Apart from creating a solid, safe and well collateralized investment, we insist on construction projects using one hundred percent union labor,” said Kao. “Union members can clearly see the benefit from the use of their pension funds,” he added, noting both the safe return on the investment for union pension funds, and also the fact that thousands of union construction jobs are created through the fund each year. The secured labor union and construction financing provides the foundation for the creation of as many as 1,933 new construction-related union jobs. According to an economic study, the agreement is expected to supply 2,691 permanent new jobs in the community, $305 million in total annual economic output and an additional $735,000 annually to the City of West Hollywood budget in new taxes. The site is approximately 2.9 acres and is currently used for surface parking. The site will be improved with a 400,000 square foot Class A office building. The building will be separated by two towers. The East Tower will consist of six levels of office space containing 215,000 square feet and the West Tower will consist of eight levels of office space containing 185,000 square feet. “I noticed that on this project there’s a lot of stone work so I think this is going to create a lot of work for our members,” said Danny Garcia, Business Representative BAC Local 4. “The Pacific Design Center is a real landmark for the city of West Hollywood and the RedBuilding will be a great addition. It’s something that our members can be real proud of constructing,” he added. The building is designed to provide up to 19 watts per square foot in electrical capacity. There will be six levels of above-grade parking and one level of below-grade parking in the building’s West Tower and seven levels of above-grade parking and one level of below-grade parking for the building’s East Tower. The RedBuilding, a brand-new, Class “A” office project, is a powerful statement of the energy and creativity of the 21st century, with its architectural distinction, dazzling red glass exterior, luxury amenities and exciting lifestyle components. In a proven office market with little space to spare, the RedBuilding will add premium Class “A” office space as the hottest Westside address for creative firms, new media and entertainment companies. Cohen invested more than $40 million in bringing vibrant energy back to PDC after its brief decline in the ‘90s. Uniquely attuned to the glamorous history, advanced design consciousness and special character of West Hollywood, Cohen has fostered a successful, productive relationship with the city. With the RedBuilding, Cohen is developing West Hollywood’s alternative solution to the increasing shortage of prestigious Westside office space.

 

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