Second of two parts.
See “Despite Lehman Brothers’ Troubles, Parcel B Groundbreaking Is Due,” Aug. 22. Keyword: Lehman Brothers.
This was the week that construction once was scheduled to begin on the prospective shiny centerpiece of Downtown architecture, known prosaically as Parcel B, a name that has yet to make hearts flutter, but the final product may.
A few dates have been broken on this much-heralded but so far invisible project without breaking any ground.
The latest report is that a reconfigured partnership expects to have its financing finalized in time to stage a groundbreaking at the end of September and start construction in October.
Groundbreaking has been delayed for a word from Parcel B’s sponsors, now identified as Dr. Jeffrey Rush, a San Diego physician with land and corporate holdings, and his new equity teammate, Ron Pickett, a New Yorker with whom New York has had a long business relationship.
This project is about The Culver Studios. The mixed-use three-story structure is in the showplace of Downtown, alongside Trader Joe’s, in front of the Culver Hotel, and across the street from The Culver Studios mansion.
Two Years Along
It has come to this:
Two years after Dr. Rush’s pocket-sized but wealthy group known as Rush Pacifica was selected by City Hall as the builder of Parcel B, the investors in the $52 million plan still were being lined up. The group originally included Hal Katersky, at one time the head of The Culver Studios, who was let go when his studio contract expired. Sources said Mr. Katersky left amidst disputed circumstances.
As the most recent story goes, for eight weeks this summer, Lehman Brothers, the New York-based investment bank badly wounded by the economy, and Dr. Rush sat down to negotiate how they could frame a partnership to build this long, long awaited project.
The two parties know each other, the former being a majority stockholder in The Culver Studios, and the latter a minority stockholder.
Lehman Brothers eventually pulled out, sources said, because Dr. Rush, accustomed to being in charge in his own company, was unwilling to cede authority to the bankers.
Part of what makes the still-being-shaped scenario so fascinating is the unknown degree of Lehman Brothers’ participation.
Top Floor Spoken for
An announcement said that “The Culver Studios has decided to lease the third (or top) floor for office space.”
Down below, the main tenant, occupying one floor and a half, will be Room & Board, a home furnishings company based in Orange County, called an upscale Crate & Barrel. A high-powered restaurant will be another fixture.
If the most recently designated building team of Parcel B has been following the yellow brick road, a lot of bricks have been accumulating in Culver City.
