Bando Construction to Build Apartments in LA, USA... Reenters Overseas Housing Market After 9 Years (Comprehensive)

by Choi Donghyeon

Published 30 Jan.2020 09:59(KST)

Aerial view of the mixed-use complex site 'The BORA 3170' built by Bando Construction in downtown Los Angeles, USA.

[Asia Economy Reporter Donghyun Choi] Bando Construction announced on the 30th that it has begun construction of the mixed-use residential project 'The BORA 3170' in downtown Los Angeles, USA. This marks Bando Construction's first entry into the overseas housing market since the 'Dubai Yubora Tower' in 2011.

This project involves building a total of 252 apartment units and commercial spaces from one basement level to eight above-ground floors on a site area of 51,223 square feet (sf) and a total floor area of 334,970 sf. The commercial facilities cover 16,000 sf, and parking is available for 273 vehicles. Following the land purchase in July last year, the main construction started this month, with completion planned for May 2022.

The complex is located in the heart of LA Koreatown, 10 minutes east to Downtown, 15 minutes west to Beverly, and 10 minutes north to Hollywood. It connects to Highway 10 (Santa Monica Freeway) within 5 minutes, and Highways 101 (Hollywood Freeway) and 110 are also nearby, providing excellent transportation networks to surrounding areas. Additionally, the site is surrounded by roads on three sides with no tall buildings nearby, offering outstanding views of Downtown and Wilshire Boulevard. Nearby amenities include a Korean market (Galleria Market, 2 minutes away), Hobart Boulevard Elementary School, and Seoul International Park. Various commercial facilities will be included within the complex. Planned amenities also feature a courtyard, outdoor swimming pool, barbecue area, fitness center, lounges on each floor, club room, and rooftop lounge, providing diverse relaxation spaces and conveniences.

Bando Construction formed a task force (TF) team about two years ago to conduct market research and feasibility studies for its US housing business. To directly manage the entire project from land acquisition to development, construction, and leasing, the company has meticulously monitored all aspects of the business, including US housing laws and permitting procedures from the early design stages. Although the US construction market has high entry barriers for Korean construction companies due to complex permits and administrative procedures, the upcoming 2028 Olympic Games and other large-scale development projects are creating a second construction boom, which is the background for Bando's US market entry.

Most Korean construction companies that have entered the US market so far have acted mainly as developers, conducting simple development projects or selling land and leaving. However, Bando Construction established a local corporation through its affiliates and directly managed everything from land acquisition, permitting, construction, to supply. It is rare for a Korean construction company to handle both development and construction in the highly challenging US housing market. A Bando Construction official said, "This is not just a financial investment in a simple development project but involves direct design and construction," adding, "This approach reduces overseas business risks and maximizes profits, leading to stable overseas sales."

To continue the reputation of the 'Yubora' brand in the US, Bando Construction used the project name 'The BORA.' The company plans to maintain this brand in future projects to build popularity for its apartment brand in the US market.

A Bando Construction official stated, "'The BORA 3170' mixed-use complex, which will become a landmark in LA Koreatown, will present a new success model for overseas business in the US following the Dubai Yubora Tower," and added, "We will pioneer new opportunities in overseas business in the US and Europe by discovering high-quality project sites."