The Ratkovich Co. is officially out of the Bloc.
After struggling to get the 1.8-million-square-foot mixed-use complex off the ground, Wayne Ratkovich’s development firm has sold its stake in the project to its equity partner, National Real Estate Advisors. The move was announced in a company statement Monday.
The joint venture acquired the sprawling property in Downtown Los Angeles in 2013 for $241 million, with Blue Vista Capital Management.
Years later, they jointly developed it into the Bloc, which now spans an entire city block in Downtown Los Angeles. The project includes a Sheraton Grand Los Angeles Hotel and Macy’s flagship store, among other smaller retail shops.
Since its inception, the project has been facing setbacks. Many retailers that were announced on the site backed out of agreements, leading industry experts to question whether the destination would ever become the destination that was promised.
In February 2016, it was evident that Ratkovich was experiencing financial troubles when a $122 million CMBS loan it inherited was transferred to special servicer, TRD previously reported. The developer later brought retail leasing in-house, signaling more trouble was brewing.
In a company statement, Ratkovich said it will redirect its efforts to other development projects, including the San Pedro Public Market and the Alhambra. It will also continue to manage its other assets, such as 5900 Wilshire and the Hercules Campus at Playa Vista.