The developer of the massive Grand Avenue project in downtown Los Angeles said Tuesday that it had secured an additional financial partner for the long-delayed project.
The Korean investment firm Honua Group will invest $100 million in capital funds in the first phase of the project, which has been subjected to a series of delays as the credit market has tightened.
If the project does not secure a construction loan and break ground in February, the developer, Related Cos., must pay a penalty to the city and county, which own the land where the project would be built.
The investment firm is the second foreign group to invest in the public-private development. A fund controlled by Dubai's royal family put $100 million into the project earlier.
The new investor must be approved by the Community Redevelopment Agency, the county Board of Supervisors and the joint city-county board overseeing the project.