7901 W SUNSET BLVD., LOS ANGELES, CA 90046
SUNSET BLVD
FAIRFAX AVE CONFIDENTIAL OFFERINGCONFIDENTIAL MEMORANDUM GENERATIONAL OPPORTUNITY FOR MIXED-USE DEVELOPMENT SITE ON SUNSET STRIP This Memorandum (“Offering Memorandum”) has been prepared by Hudson Partners based on information that TABLE OF CONTENTS was furnished to us by sources we deem to be reliable. No warranty or representation is made to the accuracy thereof; SECTION ONE 04 subject to correction of errors, omissions, change of price, EXECUTIVE PROFILE prior sale, or withdrawal from market without notice.
This Memorandum is being delivered to a limited number of SECTION TWO 10 parties who may be interested in and capable of purchasing PROPERTY INFORMATION the Property. By its acceptance hereof, each recipient agrees that it will not copy, reproduce or distribute to others this Memorandum in whole or in part, at any time, without the SECTION THREE 24 prior written consent of Hudson Partners, and it will keep MARKET OVERVIEW permanently confidential all information contained herein not already public and will use this Confidential Memorandum only for the purpose of evaluating the possible acquisition of the Property. This Memorandum does not purport to provide a complete or fully accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information, which prospective buyers may need, or desire. All financial projections are based on assumptions relating to the general economy, competition and other factors beyond the control of the Owner and, therefore, are subject to material variation. This Memorandum does not constitute an indication that there has been no change in the business or affairs of the © 2017 Hudson Commercial Partners, Inc. The information contained in Property or the Owner since the date of preparation of this this document has been obtained from sources believed reliable. While Hudson Commercial Partners, Inc. does not doubt its accuracy, Hudson Memorandum. Commercial Partners, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to This Memorandum is being delivered by Hudson Partners independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do to prospective purchasers with the understanding that all not represent the current or future performance of the property. The prospective purchasers will conduct their own independent value of this transaction to you depends on tax and other factors, which should be evaluated by your tax, financial and legal advisors. You and investigation of those matters, which they deem appropriate your advisors should conduct a careful, independent investigation of the in order to evaluate this offering. Additional information and property to determine to your satisfaction the suitability of the property for your needs. an opportunity to inspect the site will be made available Hudson Commercial Partners, Inc. logo are service marks of Hudson to interested and qualified prospective purchasers. Hudson Commercial Partners, Inc. and/or its affiliated or related companies in Partners reserves the right to request the return of any or all the United States and other countries. All other marks displayed on this document are the property of their respective owners. of the information enclosed. 2 3 Current Use: ARCO Gas Station Current Improvements: Phase I & II ESA’s were recently completed. Phase II 7901 BLVD report states “there is no evidence of a release of hazardous materials to the W. SUNSET subject property from the current/former on-site gasoline service stations at this time.” Price Undisclosed. Zoning: C4-1D*
SITE DETAIL FAR: 1:1 (3:1 Density Bonus)*
Address: 7901 W. SUNSET BLVD., Los Angeles, CA 90046 Height Limit: None* County: Los Angeles Entitlement Status: Not Entitled APN: 5551-018-020 Council District: Council District 4, David Ryu
Lot Size: ±20,735 SF Neighborhood Council: Hollywood Hills West Traffic Count: ±90,000 Typography: Flat 4 - HUDSON COMMERCIAL PARTNERS, INC. HUDSON COMMERCIAL PARTNERS, INC. - 5 *subject to pending zone change OWNER/USER PROPERTY DESCRIPTION
EXECUTIVE SUMMARY PROPERTY HIGHLIGHTS
Hudson Partners is pleased to present a high profile, mixed-use or hotel • Once in a lifetime opportunity to purchase a prominent development site on development site at the northwest corner of Sunset Boulevard and Fairfax Avenue the world famous Sunset Boulevard located in the epicenter of Hollywood and in a highly-coveted Hollywood/West Hollywood submarket. The 7901 Sunset West Hollywood city border. Boulevard development opportunity is situated on an approximately 21,000 square foot parcel. The subject site is strategically located on the hard corner • Potential for a variety of multifamily and retail uses. of Sunset Boulevard and Fairfax Avenue and benefits from excellent visibility on one of Los Angeles’ most prominent thoroughfares, Sunset Boulevard, with • The trophy site is situated on one of the most rarely traded stretches of Sunset traffic counts of more than 90,000 cars per day. Boulevard and some of Los Angeles most notable hotels are within walking distance such as Chateau Marmont, Andaz West Hollywood, Chamberlain The property’s zoning allows for a variety of development possibilities by- West Hollywood Hotel, Mondrian, Grafton, The London and the Standard. right. In particular, it may be developed for residential, retail, hotel, office or any combination of these product types. This prominent site is zoned C4-1D • Sunset Boulevard features some of the most fashionable names in retail and “General Commercial.” Developer has an opportunity to increase the FAR to 3:1 is also home to trendy restaurants and cafes. Just minutes to the west of ratio with a variance. 7901 Sunset is the chic ‘Sunset Plaza’ featuring Armani Exchange, Catherine Malandrino, H. Lorenzo, BCBG, Calypso, Dolce & Gabbana, La Clafoutis, Il 7901 Sunset development site’s strategic location is adjoining some of Los Sole, Cafe Med and many more. Angeles’ most sought after submarkets of Hollywood and West Hollywood. Situated just East of Sunset and Crescent Heights Boulevards to the approved • Population: 3 mile radius – 249,864 people , Average Household Income: Frank Gehry’s 300,000 square foot project at 8150 Sunset Boulevards which $114,832 and Traffic Counts: Sunset Blvd & Crescent Heights Blvd - 90,063 has been hailed as the new gateway to the Sunset Strip. This section of the Sunset Strip has an affluent neighborhood, home to some of the most expensive • A Developer has an opportunity to increase the current FAR to 3:1 ratio and residences, the chicest restaurants, hotels and shops in Los Angeles. creating additional project density similar to the 7950 Sunset Boulevard mixed use project. This densely populated infill location is surrounded by exceptionally affluent residential communities including Beverly Hills, West Hollywood and Hollywood • Phase I & II ESA’s were recently completed. Phase II report states “there is no Hills. It boasts strong 3-mile demographics including a population of over evidence of a release of hazardous materials to the subject property from the 245,000 people and average household incomes of over $110,000. current/former on-site gasoline service stations at this time.”
6 - HUDSON COMMERCIAL PARTNERS, INC. HUDSON COMMERCIAL PARTNERS, INC. - 7 8 - HUDSON COMMERCIAL PARTNERS, INC. HUDSON COMMERCIAL PARTNERS, INC. - 9 SECTION 2 | PROPERTY INFORMATION THE SUNSET PLAZA PLAT MAP AERIAL OVERVIEW
12 - HUDSON COMMERCIAL PARTNERS, INC. HUDSON COMMERCIAL PARTNERS, INC. - 13 This is an informational map provided for reference purposes only. It is not adopted as a part of the Legend: Hollywood Community Plan. Single Family Residential Legend: DRAFT Multiple Family Residential Hollywood Signage District Supplemental Use District (SUD) High Medium & High Density Residential Historic Preservation Overlay Zones (HPOZ) Commercial Specific Plan Areas
Industrial Vermont-Western Station Neighborhood Area Open Space Plan (Transit Oriented District) Metro Rail Portal Public Facilities Metro Rail Portal
Barham Bl
Barham Bl Mulholland Scenic Parkway Specific Plan (Outer Corridor) Hollywoodland Specific Plan
Whitley Heights Hillhurst Av HPOZ Rowena Av Rowena Av ermont Av Hillhurst Av V Franklin Av ermont Av
Franklin Av V Hyperion Av Bronson Av Hyperion Av Bronson Av estern Av Hollywood Bl Vermont-Western W Wilton Pl Hollywood Bl Wilton Pl Tr ansit-Oriented Selma Av Selma Av Cahuenga Bl Sunset Bl Normandie Av District
Sunset Bl ne St Cahuenga Bl
Vi Fountain Av Fountain Av Spaulding Hollywood Signage ne St Highland Av Gower Av Highland Av Vi DRAFT District estern Av rgil Av Square Gower Av W
Vi Santa Monica Bl Santa Monica Bl Normandie Av HPOZ La Brea Av La Brea Av
Fairfax Av Melrose Hill HPOZ an Ness Av Hoover Av rgil Av V an Ness Av
Melrose Av Vi V
Melrose Av Hoover Av La Cienega Bl Map 1 Hancock Park Map 5 Hollywood Community Plan HPOZ Hollywood Community Plan
This is an informational map provided for reference purposes only. La Cienega Bl
Fairfax Av OVERLAY ZONES, SPECIFIC PLANS & SUPPLEMENTAL USE DISTRICTS It is not adopted as a part of the Hollywood Community Plan. PROPOSED GENERALIZED LAND USE Los Angeles City Planning Department • Graphic Services Section • December 2008 Not to Scale N 14 - HUDSON COMMERCIAL PARTNERS, INC. Los Angeles City Planning Department • Graphic Services Section • December 2008 Not to Scale N HUDSON COMMERCIAL PARTNERS, INC. - 15 Legend: Cultural Facility Hollywood Walk of Fame DRAFT Los Angeles Theater Row Zoo Metro Rail Station Autry Museum DRAFT This is an informational map provided for reference purposes only. It is not adopted as a part of the Hollywood Community Plan.
Barham Bl
Greek Griffith Theater Observatory Ford Amphitheater
Hollywood Bowl
Magic Hillhurst Av Castle Pantages
Theater rmont Av Rowena Av
Kodak Ve Bronson Av
Theater Florentine stern Av ine St Gardens We
Gower Av Franklin Av Grauman’s Montalban V Chinese Theater Barnsdall Hyperion Av Theater Park Hollywood Bl Wilton Pl
Guitar Center Selma Av Rock Walk Henry Fonda Sunset Bl Cahuenga Bl Theater El Capitan Egyptian Amoeba Theater Theater Records Fountain Av Av
Fairfax Av Highland Av Cinerema Hollywood Dome Palladium rgil Av Vi Santa Monica Bl Normandie La Brea Av Theater Row Academy of Motion Pictures an Ness Av Hoover Av Melrose Av V Map 8 Hollywood Community Plan La Cienega Bl
Los Angeles City Planning Department • Graphic Services Section • October 2009 MAJOR CULTURAL FACILITIES 16 - HUDSON COMMERCIAL PARTNERS, INC. Los Angeles CityHUDSON Planning Department COMMERCIAL • Graphic Services Section PARTNERS, • December 2008 INC.Not to Scal - 17e N Legend: Major Transit Corridor (MetroRapid Bus Service) DRAFT Metro Rail Portal
This is an informational map provided for reference purposes only. It is not adopted as a part of the Hollywood Community Plan.
Barham Bl Hillhurst Av
rmont Av Rowena A Ve
Bronson Av v stern Av ine St We
Gower Av Franklin Av V
Hyperion Av
Hollywood Bl Wilton Pl
Selma Av Sunset Bl Av Cahuenga Bl
Fountain Av Fairfax Av Highland
rgil Av Vi Santa Monica Bl Normandie Av La Brea Av DRAFT an Ness Av Hoover Av Melrose Av V Map 11 Map 28 Hollywood Community Plan La Cienega Bl This is an informational map provided for reference purposes only. MAJOR PUBLIC TRANSIT CORRIDORS It is not adopted as a part of the Hollywood Community Plan. 18 - HUDSON COMMERCIAL PARTNERS, INC. Los Angeles City Planning Department • Graphic Services Section • December 2008 Not to Scale N HUDSON COMMERCIAL PARTNERS, INC. - 19 TWO BLOCKS WEST OF SUBJECT PROPERTY HUDSON COMMERCIAL PARTNERS, INC. - 21 7950 W. Sunset Boulevard
7950 W. Sunset Boulevard is a 183 unit mixed-use luxury apartment community built on a 1.63 acre parcel in Los Angeles, Cali- fornia. The development consist of 5-story wood frame construction over approxi- mately 13,000 square feet of ground floor restaurant / retail over 4 levels of subter- ranean parking. The unit mix contains: 28 studios (15%) / 81 one bed flats (44%) / 68 two bed flats (37%) / 6 two bed townhous- es (4%). Located on the Southwest corner of Sunset at Hayworth, between Crescent Heights and Fairfax. Across from the Direc- tors Guild
TWO BLOCKS WEST OF SUBJECT PROPERTY SECTION 4
FAIRFAX AVE | MARKET OVERVIEW
SUNSET BLVD
24 - HUDSON COMMERCIAL PARTNERS, INC. HUDSON COMMERCIAL PARTNERS, INC. - 25 1350 n. western avenue market Overview 11
LOCATIONlocation
Hollywood is generally access to and from both the considered to be the area San fernando and San gabriel bounded by Western Avenue on Valleys, as well as to Downtown the east, fairfax Avenue on the and West Los Angeles. west, the Hollywood freeway Hollywood has outstanding on the north and melrose freeway access with eight Avenue on the south. freeway on/off-ramps from the Hollywood 101 freeway. Hollywood is strategically Proximity to Downtown Los located close to the geographic Angeles is 7 miles, to Los center of the greater Los Angeles International Airport is Angeles area, and is surrounded 12 miles, and to the Bob Hope, by the communities of Burbank, Burbank/glendale/Pasadena North Hollywood and Studio Airport is approximately 6 miles. city to the north, Beverly Hills and West Hollywood to the west, Hancock Park and mid-Wilshire to the south, Los feliz and Silver Lake to the east and downtown Los Angeles to the southeast. This location provides excellent
26 - HUDSON COMMERCIAL PARTNERS, INC. HUDSON COMMERCIAL PARTNERS, INC. - 27 VINE STREET 1350 n. western avenue market Overview 13
OVERVIEWoverview
As it has been since the early 20th century, Hollywood continues to be the entertainment capital of the world. In addition to its multi-tenant office base, Hollywood has a strong core composed of a major motion picture studio, independent studios, television stations, radio stations, film laboratories, record companies, recording studios, post-production facilities, special effects and multi-media companies. These firms serve as the backbone of the Hollywood commercial real estate market. Because of the technical nature of their businesses, many of these firms have made long term commitments to the area, and have made substantial investments in their equipment and facilities.
Because the entertainment industry is spread throughout the Los Angeles region and has significant hubs in Santa monica, century city, culver city, West Hollywood, Hollywood and Burbank, Hollywood provides these firms with a strategic central location to serve other industry firms in the surrounding areas. Due to the proximity to the major studios in Burbank (ABc/Disney, Dreamworks and Warner Bros), Universal city (NBc/Universal), century city (fox) and culver city (Sony), Hollywood, home to Paramount, is the perfect central location for firms that conduct business with these major studios and draw their employees from throughout the Los Angeles area.
FRANK GEHRY’S PROJECT AT 8150 SUNSET BLVD.
28 - HUDSON COMMERCIAL PARTNERS, INC. HUDSON COMMERCIAL PARTNERS, INC. - 29 14 market Overview 1350 N. WesterN aveN ue
MARKETmarket DRIVERSdrivers
The primary driver of the Hollywood submarket is the presence of entertainment, media and technology companies that occupy studio and office space and serve as a magnet for the ancillary entertainment industry service providers. Hollywood contains one of the largest concentration of entertainment industry and media firms in the world, a sampling of these recognizable entertainment industry leaders include:
ENTERTAINmENT LEADERS Academy of motion Picture Arts Eastman Kodak company Nickelodeon Time-Warner cable & Sciences Encore Video Panasonic Trailer Park AOL j2 global communications Panavision TV guide Ascent media group Jim Henson Studios ReveilleProductions/Shine VNU/Nielson capitol Records KTLA Television Samsung cNN Live Nation Smuggler Deluxe magical Elves Technicolor
HOLLYWOOD STUDIO LOTS EDUcATION cBS Television center Sunset-Bronson AADA Los Angeles city college Hollywood center Studios Studios AfI musicians Institute Paramount Studios Sunset-gowerStudios AmDA SAE Institute Raleigh Studios The Lot Emerson college The LA film School Red Studios IcDc college The LA Recording Studio Le cordon Bleu ANcILLARY SERVIcE PROVIDERS BLT Assoc. Paskal Lighting Laser-Pacific media Soundelux Paladin Lighting Todd-AO
30 - HUDSON COMMERCIAL PARTNERS, INC. HUDSON COMMERCIAL PARTNERS, INC. - 31 1350 n. western avenue market Overview 17 18 market Overview 1350 N. WesterN aveN ue
HOLLYWOOD 959 (959 SEWARD ST) 5800 W SUNSET BOULEVARD Kilroy Realty recently purchased the former the current market conditions and Hollywood’s mILLENNIUm HOLLYWOOD SUNSET & gORDON BLVD 6200 EmERSON cOLLEgE cBS/columbia Square facility and is planning a current momentum, it is likely several of these JH Snyder is preparing to break ground with The former Warner Bros’ headquarters Developers are seeking entitlements to build a construction is underway on the mixed-use construction has begun on Phase I of a $500m Boston-based Emerson college has broken renovation of the existing structure and a new projects will continue moving forward. their 245,000 Sf creative office building on during the 1920’s, Hudson Pacific is landmark project of up to 1.2 mSf of residential, project located on the old Spaghetti factory mixed-use project across from the Pantages ground on a permanent campus for its 22- mixed-use development on the site. Plans call • Exceptional Regional flexibility and Access spec. The fully entitled two building campus, seeking entitlements for a 405,000 Sf office retail, hotel, sports club restaurant and office site. When complete, the project will deliver 300 Theatre. Phase I will consist of 535 residential year old LA program, now located in Burbank. for renovation of 50,000 Sf of existing office • central to Entertainment Industry located around the corner from the Hollywood development located at the Sunset Bronson space. millennium Hollywood would include two residential units, 12,000 Sf of retail space and units and 75,000 Sf of retail space. Phase II, The 10-story building, adjacent to Sunset space into creative office space and 320,000 media Production campus, is seeking LEED Studios/KTLA site. The proposed development • central to Los Angeles Housing 40+ story high-rise towers and be designed 40,000 Sf of creative office space. located immediately across Hollywood Blvd, will gower Studios, will include student housing, Sf of new creative office space, to be built in certification and is targeting entertainment and will consist of a 315,000 13-story tower with an • metro-Rail / Public Transportation to provide public space for the community. consist of 507 residential units and 95,000 Sf of classrooms, offices and ground level retail phases, spread across primarily low/mid-rise media companies. adjacent 90,000 Sf 5-story production building. • World class Retail, Entertainment and Encompasses 4.5 Ac including the capitol retail space. totaling 115,000 Sf. buildings. The fully entitled site will also include Lodging gensler is designing both properties for LEED Records Tower. Approval estimated to take at new retail and residential components. • Improving and Expanding Housing Stock certification. Delivery is anticipated for 2015. least 18 months. There are several other office developments cOLUmBIA SQUARE that are at various stages of planning, but given
32 - HUDSON COMMERCIAL PARTNERS, INC. HUDSON COMMERCIAL PARTNERS, INC. - 33 1350 n. western avenue Area Description 21 theTHE hollywood HOLLYWOOD renaissanceRENAISSANCE story STORY
Hollywood is in the midst of Hollywood is home to the • Hollywood Entertainment a major revitalization, which largest concentration of District includes over $3 billion in public film, television, and post- • community Redevelopment and private developments production facilities in the world Agency of Los Angeles highlighted by world-class making it the beating heart entertainment and tourist of the entertainment industry. HOLLYWOOD cHAmBER Of cOmmERcE venues, the extension of the Hollywood is located in the transportation infrastructure, heart of Los Angeles county, The Hollywood chamber of a large concentration of new a worldwide international commerce consists of owners, residential developments, and tourist destination with over managers, presidents and the redevelopment of numerous 19 million people visiting other key representatives from trendy restaurants, hotels, bars annually, accounting for direct a spectrum of businesses and clubs that is transforming expenditures of over $1.3 and organizations around the the area into a vibrant “live, billion. Hollywood community. Its two work, play” environment. most noticeable contributions The redevelopment of Hollywood has received to the Hollywood landscape are Hollywood has been largely increased media attention and The Hollywood Sign and The driven by three economic positive coverage in recent Hollywood Walk of fame. To this development agencies: months, emphasizing that the day, the Hollywood chamber of renaissance of Hollywood is • Hollywood chamber of commerce successfully continues happening and it’s happening commerce its mission to promote and now! enhance the business, cultural and civic well-being of Hollywood.
34 - HUDSON COMMERCIAL PARTNERS, INC. HUDSON COMMERCIAL PARTNERS, INC. - 35 22 Area Description22 Area Description 1350 N. WesterN1350 ave NN.ue WesterN aveN ue
HOLLYWOOD ENTERTAINHOLLYWOODmENT worked ENTERTAIN to createmENT a second worked to cOcreatemm UNITYa second DEVELOP mENTcO mmUNITYguidelines, DEVELOP and mpreservingENT guidelines, and preserving DISTRIcT AgENcY DISTRIcT BID that spanned HollywoodBID that spanned Hollywood AgENcYhistorically significant structures.historically significant structures. Blvd from mccadden on the The results of the project have The Hollywood EntertainmentThe Hollywood Entertainment Blvd from mWhileccadden shuttered on the by state While shuttered by state The results of the project have west to gower on the east. The supported new commercial District (HED) is a property-District (HED) is a property- west to gowerlegislation on the in east. 2011, The The legislation in 2011, The supported new commercial results indicate that the BID investments such as Hollywood based business improvementbased business improvement results indicatecommunity that the Redevelopment BID c ommunity Redevelopment investments such as Hollywood has had a considerable positive & Highland and also improved district (BID) comprised ofdistrict (BID) comprised of has had a considerableAgency (cRA) positive has played a vitalAgency (cRA) has played a vital & Highland and also improved impact on the neighborhood’s Highland and Vine Streets. 210 property owners who,210 property owners who, impact on rolethe neighborhood’sand had a lasting impactrole and had a lasting impact Highland and Vine Streets. economic growth as the BIDeconomic growth as the BID since 1996, have assessedsince 1996, have assessed on Hollywood’s Renaissance.on Hollywood’sThe impact Renaissance. of these three The impact of these three has been a contributing factorhas been a contributing factor themselves millions in propertythemselves millions in property The cRA was responsible The cRA economicwas responsible development economic development in the Hollywood area’s annualin the Hollywood area’s annual taxes to pay for security, taxes to pay for security, for a 1,107-acre Hollywood for a 1,107-acreagencies Hollywood is best illustrated by agencies is best illustrated by tax revenue contribution tax revenue contribution maintenance services andmaintenance services and Redevelopment Project at theRedevelopment the significant Project retail, at the residential, the significant retail, residential, outpacing the greater Los outpacing the greater Los marketing activities to promotemarketing activities to promote foot of the Hollywood Hills. foot of theentertainment Hollywood Hills. and mixed-useentertainment and mixed-use Angeles area. The increasedAngeles area. The increased the revitalization of the area.the revitalization of the area. The plan was adopted by The plan developmentwas adopted activity by in the pastdevelopment activity in the past tax revenue directly correlatestax revenue directly correlates In 2010 alone, the HED In 2010 alone, the HED the Los Angeles city councilthe Los Angelesseveral years.city council several years. generated over $3.4 milliongenerated overwith $3.4 increased million business activitywith increased in m aybusiness 1986 with activity the goals in may 1986 with the goals to be reinvested in theseto be reinvestedto businesses in these within the BID.to businessesof encouraging within the BID. economic of encouraging economic community projects. Thecommunity HED projects.Since 1998, The the HED BID has Since 1998,development, the BID has promoting anddevelopment, promoting and was established in two phases,was established increased in two transient phases, occupancyincreased transientretaining occupancythe entertainment retaining the entertainment the first phase stretchedthe along first phasetax stretchedrevenues 271%,along parkingtax revenuesindustry, 271%, revitalizingparking the historicindustry, revitalizing the historic Hollywood Blvd from La HollywoodBrea Blvdtax revenues from La Brea have increasedtax revenuescore have of Hollywood, increased preservingcore of Hollywood, preserving on the west to mccaddenon the west to148%, mcc salesadden tax revenues have148%, salesand tax expanding revenues havehousing for and expanding housing for increased 375% and utility on the east. following inon the the east. fincreasedollowing 375% in the and utility all income groups, meeting all income groups, meeting use tax revenue has increased success of the HED-Phasesuccess I, of theuse HED-Phase tax revenue I, has increased social needs of area residents,social needs of area residents, 198%. a group of property ownersa group of property198%. owners providing urban design providing urban design
36 - HUDSON COMMERCIAL PARTNERS, INC. HUDSON COMMERCIAL PARTNERS, INC. - 37 1350 n. western avenue Area Description 25
COMMERCIALcommercial DEVELOPMENTdevelopment Over $3 billion of forecast and planned new development in Hollywood is dramatically increasing the quantity and quality of amenities easily reached from the building. The most significant projects include:
cOmPLETED PROJEcTS & mAJORA mENITIESIN HOLLYWOOD 1600 Vine El capitan Theater madame Tussauds Sunset + Vine Amoeba music Hollywood & Highland center musiccares Encore Hall Sunset Vine Tower Bank of Hollywood Tower Hollywood galaxy Original farmer’s market Technicolor Building Belmont Village Hollywood metro Apartments Palomar Apartments The Avenue Apartments children’s Hospital Expansion Hollywood museum Panavision Hollywood The Broadway Lofts cinerama Dome/ArcLight Hollywood Palladium Pantages Theater The grove at farmer’s market cosmo Lofts Hollywood Passage Petersen Building The metropolitan Dolby Theater Hudson Apartments Pickford center for motion Picture Thompson’s Roosevelt Hotel Doolittle Theater Ivar Theater Study Tribune Studios East cahuenga Alley Kaiser Permanente Expansion Redbury Hotel TV guide Building Egyptian Theater LaBelle at Hollywood Tower Renaissance Hotel W Hotel El capitan Office - Rehab Loew’sHollywood Renaissance Hotel Rubix Apartments Western carlton Apartments
PROJEcTS APPROVED/UNDER cONSTRUcTION 5555 Hollywood mixed-Use camden mixed-Use La Brea gateway Sunset & gordon mixed-Use 6255 Sunset Blvd Renovation columbia Square Loew’s Hollywood Renovation Sunset & Western -Target 959 Seward Street Emerson college Parking garage 702 Blvd6200 formosa South Office (The Lot) Paseo Plaza
PROPOSED PROJEcTS 5800 Sunset Blvd Office Tower cherokee Apartments Hollywood Presbyterian Hospital Paramount Pictures Project Academyof m otionPictures Arts and champion Highland mixed-Use Expansion Security Bank Building Reposition Sciences museum Dream Hotel millennium Hollywood/capitol Ametron Building champion Hollywood gower mixed-Use Records Project
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entertainment,ENATERTANMENTmedia & TECHNOLOGYtechnology overviewOVERVIEW According to industry research firm Veronis Suhler Stevenson, total US communications and media spending in 2010 was nearly $1.1 trillion and is projected to grow to $1.4 trillion by 2014. With 2010 revenue in excess of $443 billion, the United States is home to the largest entertainment and media market in the world. The entertainment industry includes a large number of sub-industries that control the distribution and production of mass media content including:
ENTERTAINmENT mEDIA &T EcHNOLOgY film computer &Video games Television Telecommunications Radio movie Studios music Internet Animation Print media Public Relations
The industry continues to experience strong economic growth that has outpaced the growth of the US gross Domestic Product (gDP) for the past five years. PriceWaterhouse coopers expects that the industry will expand at a
EXEcUTIVE REcEPTION 40 - HUDSON COMMERCIAL PARTNERS, INC. HUDSON COMMERCIAL PARTNERS, INC. - 41 1350 n. western avenue 8801 SunsetArea Description 27Boulevard West Hollywood, California
8801 SUNSET BLVD / FORMER ICONIC TOWER RECORDS FLAGSHIP RETAIL SITE
compound annual growth rate of 4.6% to reach created incomparable synergy and economies financial services, health services/bio-medicine, $555 trillion in sales by 2015. With the rapid of scale for content creators in the region. wholesale trade/logistics, and higher education. growth of the Internet, satellite communications, Today, Los Angeles is known as the media The entertainment industry is comprised of five and digital networks, demand for entertainment capital of the world, and entertainment may be primary components that are amalgamating and media content is increasing as more the most important industry in Los Angeles. technology and media content delivery: film, global markets come online. As incomes and It has been the fastest growing segment of television, radio, music, and animation/gaming. literacy levels rise in developing countries, the Los Angeles economy with employment With continuously improving methods of global demand for content will continue to growth of over 75% since 1992. furthermore, distribution, these industries are in constant increase. The majority of this content is created the filmed entertainment industry is the largest demand for new content which is largely being in Los Angeles, which is the leading global single contributor to the Los Angeles county provided out of Los Angeles. content producer for nearly all aspects of the economy, employing approximately 10.5% of entertainment and media industry. its workforce and generating over $27 billion Los Angeles traces its roots as the leader of the in direct local expenditures. Los Angeles entertainment industry to the dawn of motion county accounts for approximately 75% of the picture film making in the early 1920s and entertainment industry employment nationwide. now serves as the global center of the filmed most films and television shows are produced entertainment industry. Los Angeles is also the in Los Angeles, and the majority of those that largest radio and television broadcast market in are not nevertheless are created, controlled, the country with an extraordinary concentration and administered in Los Angeles. motion picture of film, television, radio, and music industry and television production alone employ the leaders in the region. This concentration is third largest amount of workers in Los Angeles primarily located in Hollywood, Burbank and the county, ahead of industry stalwarts such as greater Westside area of Los Angeles and has
Jay Luchs | Executive Vice President | Lic. 01260345 | 310.550.26.03 | [email protected] | CB Richard Ellis |1840 Century Park East | Suite 700 | Los Angeles, CA 90067| www.cbre.com 42 - HUDSON COMMERCIAL PARTNERS, INC. ©2011 CB Richard Ellis, Inc. The information above has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it HUDSON COMMERCIAL PARTNERS, INC. - 43 and©2011 make CB no Richard guarantee, Ellis, Inc.warranty The informatio or representationn above hasabout been it. Itobtained is your responsibility from sources to be independentlylieved reliable. confirm While weits accuracydo not doubt and completeness.its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. 28 Area Description 1350 N. WesterN aveN ue 1350 n. western avenue Area Description 29
RADIO AND TELEVISION BROADcASTINg mUSIc production, animation will continue to grow Sony, Activision, Electronic Arts, Riot games music industry, where modern technology quickly as an important segment of the and Wild Tangent. has allowed independent musicians to Seventy-eight radio stations broadcast in Every major record label has a significant film and television industries. The talent create professional content inexpensively, the Los Angeles area making it the largest presence in Los Angeles county. The Early on, development costs were minimal, supplied by colleges and art schools such as modern games require increasing amounts of radio broadcast market in the country. clear headquarters of Warner music group, and video games could be quite profitable. california Institute of Arts, Art center college manpower and equipment. channel, Infinity Broadcasting, Disney/ABc, Universal/EmI/capitol Records, and As a result, publishers shared larger royalties of Design, and Otis college of Art and Design and Emmis Broadcasting operate multiple Dreamworks are in Los Angeles county, and on games sold. As technology improved, The video game industry continues to grow will help to ensure that Los Angeles remains radio stations in the market, and Los Angeles Sony Bmg, and Interscope have significant barriers to entry increased and publishers at an aggressive pace, and Los Angeles is a hotbed of animation, computer generated has more Spanish-language radio stations West coast operations in Los Angeles. Apple needed larger development teams and longer well-positioned to benefit from the growth imagery (cgI) and other special effects. than any other city in the country. Advertising has opened an office in Santa monica, and development cycles to create games that as the video game and entertainment revenue has grown as consolidation has Yahoo’s music group and google are also cOmPUTER & VIDEO gAmES took full advantage of improved graphics and industries converge. Vivendi Universal continued in the industry, and since the located in Santa monica. As music, video, computing power. Today, budgets continue games already has a significant presence While once considered a niche market and a federal communications commission has mobile telephony, and the Internet converge, to grow despite the fact that most publishers at Howard Hughes center in Los Angeles, passing fad, U.S. computer and video game distributed most of the radio spectrum these companies will continue to play a major use middleware and pre-built game engines Activision’s headquarters is in Santa monica, software sales grew to $25.1 billion in 2010 throughout the nation, barriers to entry are role in the distribution of music content. to cut the development cycle which typically and Electronic Arts occupies a large amount according to the Entertainment Software high which has been demonstrated by the ranges from one to three years. of space in Playa Vista. Among others, ANImATION Association. As it grows, the gaming massive capital investment required by Sirius Disney Interactive Studios, Warner Brothers industry is consolidating and integrating Similar to the music industry, the climate Satellite Radio and Xm. As commute times Los Angeles is home to many of the Interactive, and Konami also operate in Los vertically to control increasing costs. Smaller of consolidation has given birth to legions grow, radio broadcasting will only grow in largest special effects and animation Angeles county. game developers, the traditional source of indie game developers trying to reach popularity as the primary distribution channel production facilities in the world. Due to of innovation in the industry, are being audiences through the Internet rather than for out-of-home media and advertising. its gaining popularity and the fact that it is absorbed by large publishers like Nintendo, traditional retail channels. However, unlike the less expensive to produce than live-action
cOmmISSARY
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FUTUREfuture GROWTHgrowth
Tivo, Apple, Amazon. While a wide variety of emerging com, movielink and others trends pose opportunities as have emerged as new well as threats to the industry, distribution channels for digital one theme is consistent: programming, and older new sources of revenue are distributors such as Blockbuster being developed that ease and Netflix are quickly trying studios’ reliance on box-office to revolutionize their business revenues for profitability. The models to compete with new diversification will impart greater competitors like AT&T, Verizon, stability, increased profitability, Hulu, and google’s YouTube. and the wider influence of New distribution channels will entertainment and media lead to increased demand companies. for programming, and as demand increases globally, the entertainment and media industry will become more important to the economy.
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