The buyer was represented by Charles DeSantis, senior managing director in Charles Dunn's Los Angeles office, Dunn senior managing director Janet Neman representing the seller. The Dunn brokers point out that the new development at the hotel site will be the third at the property, where the office space was built in 1959 and the hotel was added in 1984.
The transaction "shows that the demand for mixed-use properties is still growing" in the Los Angeles and Hollywood markets, comments Neman. Hotels in general have been doing well in Los Angeles County, with new construction increasing and sales prices climbing according to recent market reports.
Hollywood in particular has capitalized on two factors, market observers say: a Hollywood recovery that has generated hundreds of millions of dollars worth of new developments, including new and refurbished hotels, retail and multifamily projects.
Among these is the $326-million Hollywood and Vine redevelopment, where the W Hotel & Residences chain joined the project last year with plans for a 300-room hotel. The Hollywood and Vine project is being developed under the aegis of the Los Angeles Community Redevelopment Agency on a 4.6-acre site on the block bounded by Hollywood Boulevard on the north, Argyle Avenue on the east, Selma Avenue on the south and Vine Street on the west.
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