Gershwin Apartments was the first phase of the mixed-use project.

LOS ANGELES—Driven by an increased demand from the rise in multifamily development, retailers are settling into new locations in the Hollywood market. Marshalls and PetCo have completed a lease transaction with CIM Group for a 39,000-square-foot building at Hollywood and Western while YogaWorks has signed a lease with the CIM Group for 3,000 square feet in the Gershwin Apartment complex.

Located in the Hollywood and Western mixed-use building, Marshalls’ and PetCo’s 39,000-square-foot one-story building sits on 2 acres. Marshalls will occupy 24,000 square feet of the space and PetCo will house the remaining 15,000 square feet. The building offers onsite parking, including 125 rooftop spaces and another 47 on an adjacent lot. The two stores are expected to open in the fall of this year.

YogaWorks will be located inside the Gershwin Apartments, which was the first phase of the Hollywood and Western mixed-use project. The apartment complex is a renovation of the former Gershwin Hotel into a 105-unit apartment complex completed in March 2013. The complex is 100% leased. The third and final phase of the project is the completion of 4,000 square feet of commercial space.

“The Hollywood and Western development brings new residences and community-serving retail to this growing area in east Hollywood.  The property is well-located close to existing residential neighborhoods in Hollywood and Los Feliz, and steps from the Metro subway station,” Shaul Kuba, founding principal at CIM Group, tells GlobeSt.com.

These two leases illustrate the increased demand for retail in the Hollywood market due to the massive new construction. GlobeSt.com recently reported that Faring Capital was receiving strong interest from fashion brands as well for locations in its 17,595-square-foot retail center on Melrose. RKF was tapped as the exclusive leasing center for the location, and said they were targeting edgy lifestyle tenants.