HOLLYWOOD — Hollywood & Highland, the ornate shopping and entertainment complex in the heart of Tinseltown, has been sold for an undisclosed price, although the sale does not include the Dolby Theatre, home of the Oscars.
CIM Group sold the 2001-vintage complex to a partnership of San Jose-based real estate and investment firm DJM and Hong Kong- and Los Angeles-based equity firm Gaw Capital, it was announced Aug. 5. CIM Group has owned the complex since 2004, although it sold the adjoining the Loews hotel in 2013.
Under the deal, CIM will retain control of the 3,400-seat Dolby Theatre, which has hosted the Oscars ceremony since 2002 and is under contract with the Academy of Motion Pictures Arts and Sciences to hold the Oscars at the theatre through 2032.
“CIM’s repositioning of Hollywood & Highland increased its visibility and provided a stable anchor for the resurgence of Hollywood,” said Shaul Kuba, co-founder and principal of the CIM Group. “The development was envisioned as a catalytic project that would propel private investment and development in the community. We believe we have fulfilled this mission, and established Hollywood & Highland as a major economic generator for the city of Los Angeles.
“Following approval of the development of Hollywood & Highland, CIM was among the first private investors to identify the potential in Hollywood, acquiring an office building across the street from the site in 1998,” Kuba added. “Since then, we have actively developed, repositioned and operated numerous properties of all types throughout Hollywood and we continue to work on our existing portfolio and new opportunities in this market.”
GAW and DJM, meanwhile, plan to “reimagine” the 7.6-acre, 460,000-square-foot complex over the next two years in an effort to “upgrade the retail hub” while improving common areas and increasing entertainment events.
“The retail landscape has shifted, consumer tastes have adapted and ‘New Hollywood’ is constantly redefining itself,” Stenn Parton, chief retail officer at DJM, said in a statement. “With Hollywood & Highland, we at DJM and Gaw Capital are eager to seize the opportunity to create, in the heart of Los Angeles, an environment where the iconic allure of ‘Old Hollywood’ meets the modern innovation of new media.”
Parton said the companies hope to bring the complex “a fresh design and rebrand bolstered by relevant global brands, top-of-the-line food and beverage experiences and a state-of-the-art digital concept.”
The renovation work is expected to begin next year and be completed in 2021.
Staff and Wire Reports