Residential and retail project next to Pantages Theatre has new developer
DLJ Real Estate Capital Partners has bought the Blvd 6200 development in Hollywood from the Clarett Group. The project calls for 1 million square feet of stores and apartments a block from Hollywood Boulevard and Vine Street.
By Tiffany Hsu, Los Angeles Times
June 10, 2011
A massive residential and retail development planned next to the Pantages Theatre in Hollywood has changed hands.
DLJ Real Estate Capital Partners completed its purchase of Blvd 6200, a combination of stores and apartments taking up more than 1 million square feet a block from Hollywood Boulevard and Vine Street.
The project, which sold for an undisclosed price, has been in the works since 2005.
Frank Stephan, head of West Coast operations for the previous developer, the Clarett Group, will continue to oversee the endeavor through Clarett West Development, which was newly formed with DLJ to manage the project.
The proposed complex would sit on a 7.3-acre site leased by DLJ under a 99-year contract with the Nederlander family, which owns the Pantages and Greek theaters. Planners expect more than 1,000 apartments and 160,000 square feet of retail space to eventually rise on parking lots that blanket the area now.
"Hollywood has seen sustained rent growth and strong demand for high-quality apartments, particularly new units," said Jay Glaubach, a vice president in DLJ's Los Angeles office. DLJ, based in New York, manages more than $4 billion in real estate private equity funds.
The first phase, which developers hope to complete in about three years, will consist of 535 apartments â€” 50 of them for moderate-income families â€” as well as roughly half of the retail space and more than 1,300 underground parking spots. It will cost more than $200 million, Stephan said.
The area has been a hotbed for development recently.
Within blocks and months of each other, the W Hollywood Hotel & Residences and local entertainment impresario Sam Nazarian's Redbury hotel opened.
Developers Millennium Partners and Argent Ventures are seeking approval to build a 1-million-square-foot, mixed-use complex next to the famous cylindrical Capitol Records Tower office building in Hollywood. The project would include apartments, a hotel, offices, restaurants and stores.
And a $57-million, eight-story office building is about to take shape at 1601 Vine St., long the home of the 20-stool Molly's Hamburgers lunch counter.
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