Kilroy Buys Hollywood Parcel for $300M M-U Project
- Feb 03, 2014
Kilroy Realty Corp. has just received something from the Academy of Motion Picture Arts and Sciences and it’s not an Oscar. It’s something in Hollywood that is, perhaps, even more important than the coveted acting award: land. The REIT has acquired a nearly four-acre parcel near the renowned intersection of Sunset and Vine from AMPAS in a $46 million deal, with plans to transform the site into a mixed-use development at a cost of $250 million to $300 million.
Presently, the site consists of vacant industrial-type structures and landscaped open space that has been utilized for outdoor movie screenings. Kilroy’s vision for the property consists of a 475,000-square-foot complex featuring low- and mid-rise office space, residential apartments and retail offerings. Shimoda Design Group has been tapped to spearhead the project’s design.
The next step for Kilroy is to secure the requisite entitlements, which will take an estimated 18 to 24 months. In the meantime, the company can benefit from short-term leases of the existing space and revenue from the parking space and improved land, which can be used for special events and filming.
Although the AMPAS project is only in the beginning stage, Kilroy is already well on its way to transforming the office offerings in Hollywood. Last year, the REIT kicked off construction of the $385 million mixed-use Columbia Square, a 675,000-square-foot mixed-use project that will feature 350,000 square feet of new and 80,000 square feet of renovated creative office and studio space at the former home of CBS television and radio. Additionally, Kilroy is nearing completion of the renovation of the 322,000-square-foot Sunset Media Center office property on Sunset Blvd.
Between the two current projects and the planned AMPAS development, Kilroy will go a long way to filling a long-overlooked void. As John Kilroy, president & CEO of Kilroy, said during the company’s the third quarter earnings conference call in late October, “Most of what’s called Class A in that market is not Class A, it’s junk.”