Bando completes Korea’s first self-developed housing project in L.A.

The BORA 3170 in L.A., U.S. [Photo provided by Bando Engineering & Construction]

South Korean construction company Bando Engineering & Construction Co. has successfully completed a mixed-use development project in Los Angeles, overcoming high entry barriers into the U.S. housing market.

On Tuesday, the company announced the completion of The BORA 3170 in the heart of Koreatown in the city, an apartment complex consisting of 252 units across eight floors and commercial facilities. The development is the first self-developed project in the U.S. by a South Korean construction company.

Bando began the project in January 2020 and completed it in approximately three years.

The company oversaw the entire development process, including planning, design, construction, and management of leasing, making it a true achievement as a self-developed project by a South Korean construction company in the U.S. market. Most Korean construction companies entering the U.S. market engage in joint ventures or building acquisition transactions.

The U.S. housing market is well known for its rigorous licensing and administrative procedures. To overcome these challenges, Bando established an overseas task force two years before starting the project. The task force thoroughly reviewed building laws, licensing regulations and technical risks related to L.A.’s housing market to ensure the project’s success. The company also minimized risks by financing the project locally.

In contrast to South Korea, where large-scale apartment complexes with over 1,000 units and 50 or more floors are common, most of the U.S. housing market comprises of single-family homes, with multi-family homes typically making up 30 to 100 units. The BORA 3170, with its eight floors and 252 units, is considered a large-scale project in LA.

Bando Engineering & Construction logo [Courtesy of Bando]

The total project cost was approximately $120 million, with all units being leased out. The move-in process will begin next month and more than 100 prospective tenants have already submitted applications to rent the units. Bando expects an estimated annual revenue of around $8 million from the project.

The BORA 3170 was designed to cater to the city’s housing culture and lifestyle while incorporating unique features of South Korean apartments. For example, traditional U.S. apartments do not provide storage space, requiring tenants to purchase their own furniture. However, The BORA 3170 provides built-in storage facilities, including dressing rooms, pantries, bathroom cabinets, shoe racks and appliances, differentiating it from other housing options.

Bando said it is planning to pursue additional projects in LA, leveraging its successful experience with The BORA 3170.

It is currently preparing for its second and third projects with a goal to start construction near The BORA 3170 within the year. The second project will be located just 500 meters away from the area and will consist of a seven-story building with two basement floors, housing a total of 153 individually owned condominiums. The condominiums will be sold to individual owners.

The third project will be located about 3 kilometers away from The BORA 3170 and will consist of an eight-story building with one basement floor, housing a total of 262 apartments in a mixed-use development. Bando is also exploring additional project sites, with plans to supply over 1,000 homes in L.A. under The BORA brand.