Meruelo Maddux Announces Signing of Long-Term Lease With Restauranteur in Its Union Lofts Building

    LOS ANGELES, July 24 /PRNewswire-FirstCall/ -- Meruelo Maddux
 Properties, Inc. ( MMPI), a self-managed, full-service real estate
 company that develops, redevelops and owns commercial and residential
 properties, announced today that highly regarded restauranteur Los Feliz,
 LLC will open an upscale restaurant and lounge in Meruelo Maddux's Union
 Lofts project, a 92-unit for rent loft adaptive reuse project slated to
 open in the fall of 2007. Los Feliz, LLC, whose managing principal is the
 acclaimed restaurateur John Valencia, is a long-time restaurant, lounge and
 nightclub operator with a history of success in both Los Angeles and the
 South Beach section of Miami Beach.
     The ten-year lease agreement between Meruelo Maddux and Los Feliz calls
 for Los Feliz to occupy approximately 11,000 square feet of total space in
 the Union Lofts building. Approximately 6,000 square feet of restaurant
 space will occupy the ground floor of the building, which was formerly the
 main banking lobby of Union Bank's headquarters with an additional 5,000
 square feet of lounge space occupying the former bank's impressive vault
 and safety deposit area. The restaurant and lounge space will retain many
 of the original bank interior design elements and ornate ceiling and wall
 motifs that were commonplace with bank headquarters buildings in the 1920's
 and 1930's.
     "A restaurant operator will typically wait until a residential building
 is almost fully-leased before making a large, long-term financial
 commitment. We made a significant effort to identify the right restaurant
 and lounge operator for this property. However, we believe that it is the
 quality of the building and its location that makes this such a desirable
 opportunity for Los Feliz, LLC," said John Maddux, President for Meruelo
 Maddux. "A high quality, well-run restaurant and lounge is a significant
 asset when marketing a residential property since its presence enhances the
 building's desirability and prestige."
     "The level of activity taking place in and around the downtown corridor
 is tremendous as the area continues the process of transitioning from a
 primarily daytime employment center to a 24/7 business, social and
 entertainment destination for a growing number of residents," said Ted
 McGonagle, Chief Investment Officer for Meruelo Maddux. "Meruelo Maddux is
 well positioned to capitalize on this revitalization, as are the numerous
 companies that currently have residential and retail properties under
 construction in this unique market area."
     According to recent figures, more than 8,000 residential units have
 recently been constructed, with an additional 8,000 units currently under
 construction. As a result, more than 20,000 people have moved to downtown
 Los Angeles, with thousands more expected as more units come on line. The
 recent opening of downtown Los Angeles' first grocery store in fifty years
 also underscores the continued resurgence taking place in downtown Los
 Angeles. With the addition of the 50,000 square foot Ralph's Fresh Fare
 market (an upscale division of the Ralph's supermarket chain) which
 includes an on- premises dry cleaner, pharmacy, organic fruits and
 vegetables and a host of other offerings and amenities, downtown residents
 are beginning to look at downtown as more of a community than a business
 district.
     Meruelo Maddux's Union Lofts property is a 12-story, 91 unit adaptive
 reuse project housed in the former Union Bank Headquarters. Apartments will
 range in size from 700 to 1,900 square feet. The landmark bank building,
 built in 1928, has been painstakingly restored to its original elegance and
 features distinctive turn of the century era architectural elements.
     About Meruelo Maddux Properties
     Meruelo Maddux Properties is a self-managed, full-service real estate
 company that develops, redevelops and owns commercial and residential
 properties in downtown Los Angeles and other densely populated urban areas
 in California that are undergoing demographic or economic changes. Meruelo
 Maddux Properties is committed to socially responsible investment. Through
 its predecessor business, Meruelo Maddux Properties has been investing in
 urban real estate since 1972.
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SOURCE Meruelo Maddux Properties, Inc.