Hollywood Retail Property Trades for $61M
- Jun 04, 2018
Space 15 Twenty, a 40,000-square-foot retail property in Hollywood’s trendy Cahuenga Corridor, has come under new ownership, and Lee & Associates-LA North/Ventura helped facilitate the deal. The commercial real estate services firm represented Cahuenga Lofts LLC and Ivar Group LLC in the sale of the Los Angeles property to Artisan Realty Advisors in a transaction valued at $61 million, or a notable $1,525 per square foot.
Carrying the addresses of 1520, 1534, 1538 and 1542 N. Cahuenga Blvd. and 1535 Ivar Ave., Space 15 Twenty features two structures developed in the 1920s on an approximately 1.6-acre site, placing it firmly within an area replete with new activity.
“The entertainment companies that are moving into Hollywood are bringing with them a whole new population of young professionals who are choosing to live where they work, and that is acting like a rallying call for new dining, shopping and entertainment venues,” Cory Stehr, principal with Lee & Associates-LA North/Ventura, told Commercial Property Executive. “That’s happening throughout Hollywood, and it’s been magnified in the Cahuenga Corridor. The Corridor has long been a hub for what’s new and exciting in Los Angeles, and it’s only going to become more central to Los Angeles and the LA lifestyle.”
The six-tenant Space 15 Twenty is anchored by the popular clothing and accessories store Urban Outfitters and offers ample space for pop-up shops, as well as a courtyard for events. The asset has been high on the investment community’s radar for much of the 12 years that Cahuenga Lofts and Ivar Group have owned the property, with the ownership having received any number of unsolicited offers, according to Lee & Associates.
Artisan, which focuses on core-plus, value-add and opportunistic investments, plans to explore opportunities for Space 15 Twenty.
A Hollywood makeover
“The whole of Hollywood is undergoing a fundamental transformation,” Stehr said. New developments, from office buildings to hotels, continue to pop-up across the area, and an increasing number of projects feature retail. Deliveries over the last year include the 178-key Dream Hollywood hotel, home to The Highlight Room, an 11,000-square-foot rooftop dining and nightlife concept. The office tower at 1601 N. Vine St. also came online in 2017, offering 113,500 square feet of creative office accommodations and 2,100 square feet of retail space.
The extensive Hollywood development pipeline promises a continuation of new offerings with retail segments. For instance, an entity of Champion Real Estate Co. closed on the acquisition of a $17 million development site near the famed Capitol Records building for the construction of the mixed-use 6220 Yucca project, which will encompass an apartment tower, a hotel and approximately 12,500 square feet of ground-level retail and restaurant space.
“The development underway and recently completed is remaking the demographic profile of the community and, at least from what I can see, shifting the center of L.A. from downtown and even the Westside,” Stehr added.
Image courtesy of Lee & Associates-LA North/Ventura