The new project will include a supermarket, retail spaces and market-rate housing. (rendering courtesy of regencycenters.com)

The southeast corner of Third Street and Fairfax Avenue is transforming with a new mixed-use project rising on the eastern end of the Town & Country Shopping Center and the former site of a Kmart store.

Work has been underway since late 2022 on the 3rd and Fairfax project, which is being built by Holland Partner Group. The eight-story building will include 311 market-rate apartment units and 82,500 square feet of retail space on two levels. Scheduled to open in 2026, the project will serve as the new home for a Whole Foods Market, which will move its existing store on the west side of the shopping center into the new building. The CVS store on the west site of the parcel will remain, and a tenant has not yet been selected for the existing Whole Foods Market space.

George Elum, a spokesman for Holland Partner Group, said the new Whole Foods Market will occupy a majority of the two-levels of retail space, and there will be seven to 11 smaller retail spaces for neighborhood-serving businesses. No additional tenants have been determined yet, he added.

The property is owned by Regency Centers and the ARBA Group, and Holland Partner Group has a 99-year lease for the residential portion of the 3rd and Fairfax project.

The development underwent major revisions since it was proposed in 2018. The developer originally sought to build a 26-story tower at the site. The plan received significant pushback from residents and businesses, as well as then-City Councilman David Ryu, 4th District. Holland Partner Group agreed to scale down the project and conducted an environmental impact report ahead of its approval by the City Council in 2022. Some in the neighborhood said it illustrates how a responsible developer should conduct business.

“A working group was formed between area residents, community leaders and representatives of the developer, and the goal was to facilitate a conversation between the developer and the stakeholders and the community to come to solutions and options,” said Beverly Grove resident Danielle Peters. “There was a lot of people involved in back and forth conversations for a long time. They pared it down from 26 stories to eight stories, they changed a lot of things. They were really amenable to having endless meetings and conversations and town halls and scoping sessions with the EIR, so that by the time the EIR actually came out, there were no surprises to anybody as to what was in there.”

The project was supported by the Mid City West Community Council and the A.F. Gilmore Co., owner of the Original Farmers Market, which is located on the north side of Third Street.

“The A.F. Gilmore Company is supportive of the development across the street at the former Town and Country site,” read a statement from A.F. Gilmore Co. “Throughout the planning process, Holland Partners has been very communicative. They sought and are receptive to the ongoing feedback and input of their neighbors and the community.”

Elum said Holland Partner Group is committed to neighborhood improvements, and will add new crosswalks at Third Street and Ogden Drive, and across Fairfax Avenue south of Third Street near the existing CVS store. The crosswalk on Fairfax Avenue will have a stoplight and flashing beacon that pedestrians can activate to stop traffic. Elum added that Holland Partner Group is also building a 30-foot tall sound wall between the property and Hancock Park Elementary School, which is located southwest of the project site.

“We wanted to make sure we created something that the neighborhood wanted,” Elum added. “It was a collaborative process to make sure everyone’s opinion was heard.”

Construction started in late 2022 on the 3rd and Fairfax project, which will rise to eight stories on the eastern end of the Town & Country Shopping Center. The project is scheduled for completion in late 2026. (photo by Edwin Folven)