Situation Overview:
The Huntington Hotel, a 103-year-old residential hotel located on Main Street in Los Angeles, lacked modern electrical, plumbing and security systems causing tenant relations to weaken and police activity to rise. Due to substandard upkeep and numerous outstanding code compliance issues, the Los Angeles Housing Department (LAHD) placed the hotel into REAP (Rent Escrow Account Program) and garnished 50 percent of its income, causing the property to operate substantially in the red.

Strategy & Execution:
In January 2007, Healstone Construction Development drafted a Tenant Habitability Plan, as required by the LAHD, to reposition the hotel and bring it back up to code and therefore return it to a profitable state. The extensive plan took 100 hours of design and consultation and Healstone obtained all necessary approvals from the Los Angeles Department of Building and Safety to execute within a six-month agency-imposed timeline. Improvements outlined included new electrical systems, bathrooms designed to be Americans with Disabilities (ADA) compliant, flooring, window, doors and locks in each unit.

Healstone Construction Development, in concert with Property Management, took control of the entire property. The management team was brought on board to oversee the day-to-day operations of the hotel, ensuring proper maid and front-desk services were executed and implemented new security measures, including cameras and full-time guards.

Results:
Because of Healstone’s excellent relationships with City and County agencies, the restoration plan is on track to be 100 percent completed within the aggressive six-month timeline. The Huntington Hotel remains 80% occupied with long-term tenants. Renovations have caused minimal tenant inconveniences; as a result, police activity has been reduced dramatically and tenant relations are at an all time high.

The renovation of this property represents Healstone Construction Development’s ability to successfully design and implement a Tenant Habitability Plan within extreme timeline requirements through expertise in code enforcement compliance and working within an occupied building.