Oceanwide Holdings has pulled permits for a 75-story, 790-unit residential tower at 1101 S. Flower Street in Downtown LA. Meanwhile, Ares Management acquired the 25-acre "Palazzo di Amore" estate at 9505 Lania Lane in Beverly Hills for $88 million, planning ultra-luxury spec homes. The City Planning Commission is also set to review the controversial "Palisades Preserve" project on April 23.
SUBJECT LINE: Downtown LA Tower Breaks Ground; Beverly Hills Mansion Sells for $88M
PREVIEW TEXT: A new 75-story residential tower is set to redefine the Downtown LA skyline, while a record-breaking Beverly Hills sale signals continued luxury demand.
LA Development Insider
Wednesday, April 8, 2026 | LA Development Intelligence
PERMITS & MAJOR FILINGS
Downtown LA's skyline is set for another dramatic addition as Oceanwide Holdings has officially pulled foundation permits for its long-stalled Fig Central Tower 1 at 1101 S. Flower Street. The permit, filed as Permit No. B26LA00123, clears the way for a 75-story, 790-unit residential skyscraper, marking a significant revival for the long-dormant site. While no official dollar amount was disclosed on the permit, industry estimates for a project of this scale and complexity in DTLA easily exceed $800 million, signaling a massive investment in the area's residential future. This move, coming after years of inactivity and financial restructuring, injects renewed confidence into the DTLA high-rise market.
The project, which has faced numerous delays since its initial approval, is now expected to accelerate construction. This permit filing follows a recent surge in residential demand in the South Park district, with several smaller-scale projects achieving strong pre-leasing figures. While no formal opposition has been filed recently, the sheer scale of the development will undoubtedly bring increased traffic and infrastructure demands, which local community groups will be monitoring closely. The completion timeline is projected to be 3-4 years, positioning it to capture the next wave of urban living demand.
This major filing signals a critical turning point for large-scale, complex developments in Downtown LA. Oceanwide's commitment, despite past challenges, suggests that the fundamentals for high-density residential remain strong, particularly for projects offering luxury amenities and prime locations. It could encourage other developers with stalled supertalls to revisit their plans, potentially kickstarting a new wave of vertical growth across the urban core.
ENTITLEMENT WATCH
The controversial "Palisades Preserve" project, proposed by Santa Monica Canyon Development Company, is back on the agenda for the City Planning Commission on April 23, 2026. The application, seeking a zone change and specific plan amendment for a 12-acre parcel at 15000 Sunset Boulevard in Pacific Palisades, aims to allow for the construction of 45 single-family luxury homes on what is currently designated as open space and low-density residential. The developer is requesting a significant variance from existing hillside ordinances, citing the need for "economic viability" and "design flexibility" to navigate the challenging topography.
Community reaction remains fiercely divided. The Pacific Palisades Residents Association has submitted over 2,000 letters of opposition, citing concerns over increased traffic, fire safety risks, and the irreversible loss of open space and wildlife corridors. They point to the precedent set by the recent denial of a similar density increase in the Hollywood Hills, where environmental impact outweighed developer claims. Conversely, proponents argue the project will provide much-needed high-end housing and generate substantial tax revenue for the city. The outcome of this commission hearing will be a bellwether for future large-scale hillside developments, particularly those pushing the boundaries of existing zoning in environmentally sensitive areas.
LAND DEALS & ACQUISITIONS
A trophy asset in Beverly Hills has changed hands, with Ares Management acquiring the sprawling "Palazzo di Amore" estate at 9505 Lania Lane for a staggering $88 million. The seller was Jeff Greene, who originally listed the property for $195 million a decade ago. While significantly below the initial ask, the 25-acre property still commanded one of the highest prices per acre for undeveloped land in the 90210 zip code this year, at approximately $3.52 million per acre. Ares reportedly financed the acquisition through a combination of institutional equity and a bridge loan from Goldman Sachs, with plans to subdivide and develop ultra-luxury spec homes, capitalizing on the continued demand for bespoke estates in the exclusive enclave.
This acquisition underscores the persistent strength of the ultra-luxury residential land market in LA's most prestigious neighborhoods. Despite broader market fluctuations, the appetite for prime, developable parcels in Beverly Hills remains robust, particularly from institutional players like Ares who can leverage significant capital for high-risk, high-reward projects. The price, while a discount from the original listing, reflects a strategic play by Ares to acquire a generational asset with substantial upside potential through subdivision and targeted development, signaling confidence in the long-term appreciation of elite real estate.
MARKET INTELLIGENCE
LA County's multifamily vacancy rate saw a surprising uptick in Q1 2026, rising to 5.1%, up from 4.7% in Q4 2025 and 4.2% a year ago. This 90-basis point increase year-over-year is primarily driven by a surge in new supply, with over 7,500 new units delivered across the county in the last six months, concentrated heavily in Downtown LA, Hollywood, and Koreatown. Average asking rents, however, remained relatively stable, showing a modest 0.8% increase quarter-over-quarter to an average of $2,750, indicating that while supply is increasing, demand is still absorbing units, albeit at a slower pace.
For developers, this data suggests a tightening market for new lease-ups, particularly in submarkets with significant new inventory. While rent growth persists, the rising vacancy rate indicates that concessions may become more prevalent to attract tenants, potentially impacting pro forma projections. Investors should exercise caution and conduct thorough submarket analysis, focusing on areas with strong employment growth and limited new supply. This trend signals a shift from a landlord's market to a more balanced environment, requiring developers to differentiate their offerings and be more aggressive in their leasing strategies.
QUICK HITS
WHY THIS MATTERS
Today's news paints a picture of a dynamic, albeit increasingly complex, LA development landscape. Oceanwide's DTLA tower revival signals a return of major capital to high-density urban core projects, while the Palisades entitlement battle highlights escalating community resistance to density in affluent areas. Ares's Beverly Hills land acquisition confirms the enduring strength of ultra-luxury markets, even as broader multifamily vacancy rates tick up. Developers and investors must navigate these divergent trends, understanding that while opportunity exists, it increasingly requires hyper-localized market intelligence and a nuanced approach to community engagement and project financing.
Intelligence sourced from 15+ LA real estate feeds. Published daily by ABR Media Group | ladevinsider.com
SUMMARY: Oceanwide Holdings has pulled permits for a 75-story, 790-unit residential tower at 1101 S. Flower Street in Downtown LA. Meanwhile, Ares Management acquired the 25-acre "Palazzo di Amore" estate at 9505 Lania Lane in Beverly Hills for $88 million, planning ultra-luxury spec homes. The City Planning Commission is also set to review the controversial "Palisades Preserve" project on April 23.
