Cover Story
February: KCS West Inc.: New-Found Independence
Tuesday, 12 February 2008
 KCS West is the construction manager for the 1150 S. Grand Avenue project in Los Angeles, a 374 unit, 39 story luxury high-rise residential building.
Kajima Construction Services, West (KCS West) is providing construction services for the 1150 S. Grand Ave. project in Los Angeles, a 374 unit, 39 story luxury high rise residential tower. Developer is Meruelo Maddux, Design Architect is Mambo Architecture, Executive Architect is HKS Architects, and Structural Engineer is MKA.
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Kajima Construction Services

Los Angeles-based KCS West provides general contracting and construction management services to the commercial, hospitality, entertainment, healthcare, retail/mixed-use, residential and industrial sectors in California and the western United Sates. Formerly known as Kajima Construction Services, the company can trace its roots back 47 years when its parent company, Kajima, opened offices in the United States to serve its Japanese clients’ U.S. operations.

This January, the company went through an important structural change, shifting from a branch office of Kajima USA Group to a wholly owned, independently operated company. “We are our own entity now with our own board, officers and the flexibility and freedom to pursue specific markets unique to California and the western United States,” President and CEO Elmond Wan says.

"This new independence is very exciting. The KCS West entity has been formed so we can service clients and markets unique to this region. Our board is highly experienced in the construction industry and can provide vision and support to make sure the company is going in the right direction.”

The new structure allows KCS West to make decisions faster and be more responsive to customers, instead of going through an additional layer of corporate leadership, Director of Business Development Preconstruction Chris Durkee says.

The company will also begin working to expand its presence locally, specifically in new markets, he adds.

SoCal Projects
Headquartered in Monterey Park, Calif., KCS West has several major projects underway in Southern California. The 717 Ninth Street project is a 214-unit, 34-story luxury high-rise residential building. Construction costs for the residential project are $100 million, and it is scheduled to be completed in the first quarter of 2009.

The developer, Meruelo Maddux, has several projects planned to dovetail with Los Angeles’ revitalization efforts. The 717 building is located near L.A. Live, the future home to ESPN’s Deportes studio, ESPN Zone, P.F. Chang’s and the 7,200-seat Nokia Performing Arts Center, as well as the Staples Center. “This is probably the best-located residential property downtown,” Meruelo Maddux President and COO John Charles Maddux says. “It doesn’t have the noise of being across the street from Staples – it is extremely convenient being across the street from the new Ralph’s Fresh Fare Market and within walking distance to L.A. Live and to work.”

KCS West is also working on a new Embassy Suites hotel in Glendale, Calif. The $60 million, 272-unit project will likely be one of the last built in Embassy Suites traditional atrium style, Wan says. “Their hotels usually have a large atrium in the center, but that has become cost prohibitive and presents challenging issues like smoke evacuation,” he says. “The standard is going to change; this will be one of the last of its kind.”

As an arm of Kajima USA Group, KCS was involved with several landmark projects in California. These include:

  • Aquarium of the Pacific, Long Beach, Calif. – Completed 1998
  • AT&T Park (formerly Pacific Bell Park), San Francisco – Home of the Giants baseball team, completed 2000
  • World Trade Center, Long Beach – Completed 1989
  • Cruise Terminal, Long Beach – Completed 2003


Global Strength
KCS West and its sister companies operate on the east and west coasts through several different entities, under parent company Kajima USA Group. Hawaiian Dredging Construction Co. was founded approximately 130 years ago and was acquired by Kajima less than five years ago. The Austin Company joined Kajima USA Group two years ago after more than 100 years in business. It concentrates on high-tech aerospace projects.

This year, Kajima USA Group has already purchased another company – North Carolina-based Batson-Cook. This company has developed a strong presence in Atlanta, taking on hotel, commercial and industrial projects. “The strategy for Kajima USA Group is to purchase and allow management of each subsidiary to be independent in such a way that will provide quality service to the local client,” Wan says. “Set up in strategic geographic locations, we concentrate on providing geographic services and resources throughout the United States.”

Combined volume for the Kajima USA Group is approximately $2 billion.

Wan says KCS West’s ability to source high-quality cost effective materials from overseas sets it apart from competitors. “We work with material fabricators from all over the world and provide careful and thorough quality control,” he says. “We may be the first company in California exploring overseas fabrication of exterior walls. Ten to 15 years ago, that was not being considered.

"No western-based builder has more global resources, more technological know-how or greater financial strength,” he adds. “With the backing of our parent, Kajima, we are able to bring unmatched capabilities to our clients, and deliver the quality buildings for which Kajima is well known.”