The conversions of two downtown Los Angeles hotels into affordable housing are moving forward, bringing much-needed improvements to an area of the city that desperately needed them.

Work is expected to be completed this spring on the 463-room Alexandria Hotel, which was acquired in August 2006 by Alexandria Housing Partners LP, a limited partnership of, among others, Buxbaum Group CEO Paul Buxbaum and Ruben Islas and Jules Arthur of The Amerland Group of San Diego. Concurrently, the partnership is working on the rehabilitation of the former Rosslyn Million Dollar Fireproof Hotel, acquired last fall, into Rosslyn Lofts, which will offer a unique mix of affordable and market-rate units.

The goal in renovating the Alexandria is to provide affordable housing for workers who have been priced out of the Los Angeles rental market, says Scott Rusczyk, VP of Business Affairs for the Buxbaum Group. Households with incomes of 60% or less of the median income for Los Angeles County will be eligible for apartments in the Alexandria.

Rehabilitation of the residential units is on track to be completed in April, Rusczyk says, with completion of the commercial spaces and remaining areas expected in August. “We are very pleased with the work that has been done thus far on the residential units and look forward to the completion of the work. The units and the common areas really look wonderful,” he reports.

Rusczyk notes that the Alexandria’s residential units are currently about 50%-leased. “We are in the process of finishing certain work on the façade and expect to have several new commercial tenants in the next few months,” he adds. “We regularly get inquiries on the availability of both residential and commercial space.”

In the second project, upon completion, Rosslyn Lofts will offer a blend of 259 new ‘micro-loft’ apartments on floors three through nine for residents earning between 35% and 60% of the area median income, as well as 38 market rate units on floors 10-12.

Construction on the Rosslyn’s 10th floor is expected to be completed by the end of March. Market rate units on the 11th and 12th floors are already all fully occupied. Meanwhile, installation of all fire protection and safety systems on floors three through nine is scheduled to commence shortly, with completion anticipated within three months of the start date.

Rusczyk notes that all of the affordable floors are currently stripped and bare. “This gives us the opportunity to work from a clean slate as opposed to having to work around tenants on those floors,” he says. “By essentially starting

The Rosslyn, once known as the ‘Million Dollar Fireproof Hotel,’ is being transformed into a mix of affordable and market-rate apartments.

from scratch, this allows us to focus attention on details and make the units and common areas really interesting. We are very excited about the possibilities this affords us.”

The reaction of the local community to both projects has been positive. “In the case of the Alexandria, the corner of Fifth and Spring Street in the Historic District of downtown Los Angeles is dramatically different than it was when we closed on the building in August 2006,” Rusczyk says. “Despite periodic requirements for scaffolding during the reconstruction process, the area around the building is cleaner, quieter and safer.”

Both projects “are a breath of fresh air in an area of downtown Los Angeles that so desperately needs it,” he continues. “Area businesses and residents and the neighborhood organizations are very excited about the projects. The overwhelming support we and The Amerland Group have received from so many local politicians, the police department and others just makes our efforts that much more rewarding. Nothing, however, makes us happier than when a tenant stops us during the day and thanks us for the changes that are taking place. We firmly believe that if you want to change the world, you start by changing your block.”