As the regional transit hub, Catellus’ Union Station connects five bustling counties in Southern California via multiple rail and commuter lines, including Amtrak, Metro Rail and Metrolink.

By Allen Kenney

The "union" part of Union Station in Los Angeles certainly befits the history of one of the United States' oldest functioning railroad stations.

When construction was completed in 1939, Union Station provided a site where three of the era's major railroad systems—the Santa Fe, Southern Pacific and Union Pacific railroads—could merge in the country's second-largest city. Likewise, the station's architecture reflects an eclectic blend of styles. The building bears the design of father-and-son team John and Donald Parkinson, whose architecture firm gained notoriety in Los Angeles during the early 20th century for designing some of the city's most prominent landmarks, including City Hall and Los Angeles Memorial Coliseum.

In 2007, Union Station was named to the American Institute of Architects' list of "America's Favorite Architecture." A unique mixture of Moderne, Moorish and Spanish Colonial Revival influences produce an eye-catching design to supplant the drab feel of a typical train station. Extensive courtyards and gardens, for example, breathe fresh air into the terminal's campus environment, a stark contrast to other venerable train stations around the country such as New York's Grand Central Station.

That history of convergence still lives on at Union Station as Catellus Development Group, a ProLogis (NYSE: PLD) company, has transformed what was once simply a transit facility into a bustling mixed-use commercial property in the heart of Los Angeles' downtown.

Restoring History

Union Station didn't become part of ProLogis' portfolio until 2005. Prior to that, it had been owned and operated by Catellus Development Corp., an offshoot of the Santa Fe Southern Pacific Corp. formed in 1990 to oversee the parent company's real estate operations in areas close to its railroad landholdings. ProLogis and Catellus merged in 2005, and Catellus Development Group now exists as a business unit underneath the ProLogis umbrella, specializing in urban infill and redevelopment projects.

"The Catellus merger was strategically important to ProLogis for several reasons," says Melissa Marsden, ProLogis' senior vice president of investor relations and corporate communications. "It significantly expanded our presence in five of the largest logistics markets in the U.S., specifically southern California, and we retained a highly skilled group of professionals with substantial expertise in retail and mixed-used redevelopment—areas in which Catellus has built a strong reputation."

Aerial view of Union Station in Los Angeles.

Today, Catellus still owns and operates Union Station. Located in downtown Los Angeles and standing adjacent to the city's civic center and central business district, the building is listed on the National Register of Historic Places. The majority of the 74,000 daily visitors come from the five surrounding counties of Southern California and travel using an array of rail and commuter train lines, such as Amtrak and Metrolink, as well as the subway, light rail and bus system operated by the city's Metropolitan Transportation Authority.

While the entire site occupies more than 50 acres, the station itself spans approximately 140,000 square feet. Overall, the property is fully entitled for up to 5.9 million square feet of additional hotel, office, residential and retail development. The property includes office space, and tenants range from restaurants and bars to transit support services to newsstands. The site also houses two other major facilities designed and built by Catellus: the 26-story Metropolitan Transportation Authority (MTA) main office and the 540,000 square-foot Metropolitan Water District (MWD) headquarters. Los Angeles urbanites can even choose to live at Union Station in The Mozaic, a 278-unit luxury apartment opened by Lincoln Property Company in 2006.

In recent years, Catellus has undertaken a series of restoration projects around Union Station, including: improvements to pedestrian tunnels; signage enhancements; restoring the property's marble, tile and ceiling murals; and in-depth landscaping projects to spruce up the public sitting areas that surround the building.

Going forward with millions of square feet in entitlements remaining, Catellus is in negotiations for more adaptive reuse of portions of the property, as well as new office and residential development projects on the land adjacent to the train yard. Catellus Associate Vice President Tom Payne says the company hopes that Union Station will be a catalyst for a growing number of similar projects in the company's portfolio.

"We are really looking to grow the mixed-use side of the business," he says. "This type of project is exactly what we're looking to do more of going forward. In addition to traditional land development, we're not afraid to go into these redevelopment situations."

Double-Edged Sword

Payne says Union Station's striking design and history have successfully drawn current tenants to the property.

"The station has courtyards and gardens that you don't normally see in modern properties," he says. "People really respond well to the historical aspects of the project."

But Union Station's biggest selling point, according to Payne, is its status as the transportation center of Los Angeles. Besides serving as the hub for Southern California's transportation system with subway, light rail, passenger rail and bus service, Union Station has immediate access to the Santa Ana Freeway, a major Los Angeles thoroughfare. The station also stands in close proximity to Los Angeles' Civic Center neighborhood, a major complex of government offices and buildings. The city's central business district and many downtown cultural and recreational amenities are located within a short walk of the station.

"It is truly the hub of Los Angeles transportation," Payne says. "It's a central part of L.A."

Of course, some of Union Station's greatest selling points—namely it's unique architectural design and history—also create some of the greatest challenges associated with operating it and developing the property to bring in new clients. For example, agreements with local zoning authorities restrict opportunities for new development in certain areas of the property, such as the station's front façade. Additionally, Catellus can only contract with specially trained architects and construction companies for development projects.

"It limits you, but it also creates a charming property to be developing around," Payne says.