LOS ANGELES—Hollywood is certainly undergoing a renaissance, complete with major office development and massive residential development and redevelopment that will change the market dramatically over the next decade. However, some developers are being deterred from the market because of unclear zoning and a lengthy entitlement process that is both time consuming and costly.

In an earlier story, GlobeSt.com reported that Champion Real Estate sold 1.75 acres of land for $39.9 million, a record price. The land was originally slated in for development, but the firm changed their business plan after going through the entitlement process. “After we got our approvals, a court determined that Hollywood’s community plan update, upon which the city required that we designed our project, was thrown out, and as a result, all projects had to go back to the prior community plan, which required us to go back and modify our entitlements,” Bob Champion, president of Champion Real Estate, tells GlobeSt.com. “This whole thing took about a year and a half longer than expected, so when we did receive entitlements, we realized that with all of the resources that we had spent on this property our business had changed. We decided that rather than using the capital to build this project, we would take our profits and use that to further bolster our value-add business.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.