Hollywood Projects

[Steve2726]

From the Los Angeles Business Journal:

Hollywood Faces Consequences of Residential Binge

Excerpt posted below, click this link for the full article:
http://www.labusinessjournal.com/art...371&aID2=96774


Posted date: 2/3/2006
Hollywood Faces Consequences of Residential Binge

By ANDY FIXMER
Los Angeles Business Journal Staff

The sizzling rate at which Hollywood office buildings are being converted into expensive residences is getting too fast for even some of its original proponents – the city of Los Angeles and members of the local business community.

While initial conversions mostly have been of unoccupied older buildings, developers recently have begun targeting more modern offices that have significant occupancy.

Much of the recent concern was sparked by Phoenix-based Alliance Residential Co., which paid $29 million for the 180,000-square foot office building at 7060 Hollywood Blvd.

The company informed city officials last month that it plans to convert the building on the southwest corner of Hollywood Boulevard and Sycamore Avenue into high-end residences.

“That really opened our eyes,” said Leron Gubler, executive director of the Hollywood Chamber of Commerce, which has been lobbying city officials to protect the community’s remaining office buildings.

The property is one of the neighborhood’s largest office buildings and is adjacent to a twin tower at 7080 Hollywood Blvd. that is completely filled with office tenants.

City officials say that if 7080 is successful in attracting tenants there is little reason that 7060 can’t be revitalized to do so also. Moreover, there is concern that other Hollywood buildings currently for sale – such as the CNN building on Sunset Boulevard – could be next.

If the buildings are taken off the market, and no new offices are built, then much of Hollywood’s office tenants could be forced to relocate to surrounding communities.

The concerns prompted the Hollywood Chamber of Commerce to set up a meeting next month among city officials, property owners and developers to discuss ways to balance residential and office development.

Already the offices of Mayor Antonio Villaraigosa and Council President Eric Garcetti, whose 13th District includes most of Hollywood, and the Community Redevelopment Agency of Los Angeles are debating ways to amend the city laws that allow the conversions in Hollywood.

While a proposal is still being hammered out, the city officials are also looking at ways to influence the construction of office buildings by changing the area’s zoning and preemptively entitling parcels for office buildings.

“In a way, it’s become too much of a good thing,” said Helmi Hisserich, the head of the Hollywood office of the redevelopment agency. “The intention wasn’t to flush out tenants and convert functional office buildings.”

Shrinking supply
As in downtown Los Angeles, converting older Hollywood office buildings into high-end apartments has caught on quickly.

[cookiejarvis]

Are there any Class A office buildings left in Hollywood? Most of the office building stock in Hollywood is fairly worn out structures from the 1960s. Now would be a good time for the CRA to start encouraging developers to build high tech production offices and lure post-production houses back from the westside. They can start with the soon to be vacated KCBS studios on Sunset & Gower.

[dktshb]

There are plenty of vacant office buildings in Hollywood and a couple of them were remodeled in the last couple of years for business only to sit vacant. I would rather these vacant buildings be converted to residential. There still is plenty of vacant lots too!

[JRinSoCal]

Isn't that beautiful office building across from Hollywood and Highland (I forget the name but its the pointy one) vacant also? Are there any plans to convert this building?

[JRinSoCal]

^Ok this is the building I'm talking about:

[cookiejarvis]

You mean the Hollywood First National Bank. Yeah, it's a beaut, but it's not by definition "Class A" office space. The floor plan is too narrow for most modern day office needs...I know there was an animation company using the top floors a few years back, but I don't know what's currently going on at that location. The landlord's probably holding out for a big corporate tenant...or maybe the Scientologists are upgrading.

[ferneynism2]

Originally Posted by cookiejarvis

It would be cool to make this into a smaller hotel. The building needs some lights and a fresh coat of paint.

[LAMetroGuy]

Originally Posted by Bernd

H&M Goes Hollywood -- CIM Group Brings Hot Women's Apparel Retailer to Los Angeles on Hollywood Blvd.; Marks CIM Group's Second Deal with H&M; Company Also Leased 12,000 Square Feet in Pasadena

HOLLYWOOD--(BUSINESS WIRE)--Feb. 16, 2006--Hennes & Mauritz (H&M), the fashion-forward Swedish apparel retailer, will make its Hollywood debut with a 10,000-square-foot store leased from CIM Group on Hollywood Boulevard, across the street from the Hollywood & Highland Center. H&M is one of the most popular fashion retailers in the U.S. and Europe with its proprietary collections of trendy, affordable and well-made women's apparel.

"Hollywood has the demographics and the appeal as a hip location which is attractive to the H&M customer who wants what's current, trendy, and creating a buzz," said Shaul Kuba, principal, CIM Group. "Selecting Hollywood Boulevard signals the renewed attraction of Hollywood as a retail and entertainment destination."

CIM Group plans a complete remodel of the location at 6914 Hollywood Boulevard, transforming the former restaurant space into a bright, contemporary storefront. Hollywood is the second location H&M has leased with CIM Group. Earlier this year it was announced that the retailer plans to open a 12,000-square-foot store in a CIM development on Colorado Blvd. in the bustling Old Pasadena district in 2006.

"H&M has a tremendous following among young women who want the latest fashions. The company's distinctive clothing collections often include special lines from top designers such as Stella McCartney and Karl Lagerfeld," he added.

H&M will be directly across the street from CIM Group's Hollywood & Highland Center, which has 387,000 square feet of national and local fashion and luxury retailers, some of Hollywood's hottest clubs and restaurants and the 3,400-seat Kodak Theatre. Since acquiring the center in 2004, CIM Group has added premier retailers such as Virgin Megastore's west coast flagship in 20,000 square feet, BCBG Max Azria and American Eagle Outfitters to its collection of top retailers and restaurants. CIM also has made substantial improvements to Hollywood & Highland Center with escalators to transport guests from Hollywood Boulevard to all four levels of the center, enhanced lighting and signage and is currently constructing an interactive water feature in the center courtyard to debut in early May.

"The success of Hollywood & Highland has brought scores of Los Angeles residents back to Hollywood Boulevard for shopping, dining and entertainment. This, coupled with the large number of tourists, has given the area a significant daytime and nighttime population," observed Kuba.

H&M's exclusive collections are created by more than 100 designers and approximately 100 buyers who work together to deliver the three components comprising H&M's concept -- fashion, price and quality. H&M began its U.S. expansion in 2000 with the opening of a flagship store on Fifth Avenue in Manhattan. In November 2005, it opened its first West Coast stores in San Francisco attracting throngs of shoppers. The Hollywood store is expected to open in late 2007.

CIM Group has identified Hollywood as a premier urban district for investment and development. In line with its long-term view of a flourishing Hollywood community, the company has built a portfolio that includes a variety of properties. They include housing, office, entertainment and a diverse mix of restaurants and retailers to support revitalization of the area as a vibrant urban center serving residents, visitors and businesses. The company made its first investment in Hollywood in 1998 with the acquisition of the office building now known as the TV Guide Hollywood Center, which also is the company's headquarters. Today, the CIM Group owns 10 properties throughout the area and is one of the largest property owners in Hollywood.

http://home.businesswire.com/portal/...23&newsLang=en

thanks Bernd!

This is good news. Looks like it will go in place of the former Hamburger Hamlet restaurant. I wish it would have been more in between Highland and Vine. Maybe this could have been posted in the Hollywood Projects thread... just to ensure all hollywood topics are together?

[Bernd]

^ The Hambuger Hamlet is still there. :confused:

[LAMetroGuy]

Hamlet Hollywood
6914 Hollywood Blvd.
Los Angeles, CA 90028
(323) 467-6106


Maybe they plan on closing this one since there is one just around the corner on Sunset.

[Bernd]

^ Huh. I guess they'll use the HH space. Too bad. The grungy buidling to the east of HH is a horrible, horrible place. A tacky candle shop, a T-shirt joint, boarded up upper floors...just a disaster. I'm hoping CIM or someone can rehab that building because it's the worst place on the block.

[LAMetroGuy]

I'm glad that H&M will be in a location other than Hollywood & Highland... this will add to the people walking across the street to visit a popular clothing store! More street live... now if it can only move towards Vine... Hollywood would be rockin'!!!

[citywatch]

Originally Posted by Bernd

The grungy buidling to the east of HH is a horrible, horrible place. A tacky candle shop, a T-shirt joint, boarded up upper floors...just a disaster. I'm hoping CIM or someone can rehab that building because it's the worst place on the block.

You'd think the owner at least could do something as simple as painting the plywood that's been covering the upper windows of his bldg for several yrs. But noooo, he has to be a lazy slob. And so his property brings down that part of the blvd.

[dktshb]

Here's some info on the proposed Madrone. It looks like LA city council will make this happen even though NIMBY'S at the Hollywood Versailles are causing a stink.

File History
9-28-05 - For ref
9-30-05 - Ref to Planning and Land Use Management Committee
9-30-05 - File to Planning and Land Use Management Committee Clerk
10-28-05 - Set for Planning and Land Use Management Committee on November 1, 2005
11-1-05 - Planning and Land Use Management Committee Disposition - Continued to November 8, 2005 and in Council November 15, 2005
11-8-05 - Planning and Land Use Management Committee meeting canceled - Continued to November 15 and in Council November 22, 2005
11-9-05 - Council Action - CONTINUED TO NOVEMBER 22, 2005
11-15-05 - Planning and Land Use Management Committee Disposition - Deny appeal; Approve project subject to revised conditions
11-22-05 - Council Action - Planning and Land Use Management Committee report ADOPTED *AS AMENDED (see attached Motion):
1. FIND that this project will not have a significant effect on the environment, pursuant to the City's Environmental Guidelines and is in compliance with the California Environmental Quality Act; that the Mitigated Negative Declaration reflects the independent judgment of the lead agency City of Los Angeles; that the documents constituting the record of proceedings in this matter are located in Council file No. 05-2039 in the custody of the City Clerk and in the files of the Department of City Planning in the custody of the Environmental Review Section; and ADOPT the Mitigated Negative Declaration [ENV 2005-1846 MND].
2. ADOPT the FINDINGS of the City Planning Commission as the Findings of the City Council.
3. RESOLVE TO DENY APPEALS filed by hollywood Versailles Tower Homeowners Association, THEREBY APPROVE the Vesting Tentative Tract No. 62617 for a maximum of 180 condominium units and 13,700 square feet of retail space in six commercial condominiums located at 1633 La Brea Avenue (1611-47 North La Brea Avenue, 7110-26 Marshfield Way), subject to modified Conditions of Approval for Conditions Nos. 13.b and 16MM-26, as shown in the attachment to this Committee report - Findings ADOPTED - Mitigated Negative Declaration ADOPTED.
Applicant: John Laing Urban VTT 62617-1A
11-22-05 - Council Action - Amending Motion - LaBonge Mover 2005 / Reyes - ADOPTED - MOVE that the matters of (1) Mitigated Negative Declaration and Planning and Land Use Management Committee report relative to Vesting Tentative Tract map appeal (VTT 62617) for property at 1633 La Brea Avenue (1611-1647 North La Brea Avenue, 7110-71126 Marshfield Way), Item No. 19 on the Los Angeles City Council agenda for November 22, 2005 (Council File No. 05-2039) and (2) Mitigated Negative Declaration and Planning and Land Use Management Committee Report relative to variance appeals for property located at 1633 La Brea Avenue (1611-1647 North La Brea Avenue, 7110-7126 Marshfield Way), Item No. 20 on the Council agenda for November 22, 2005 (Council File No. 05-2039-S1), the City Council adopt, and the Council does hereby adopt, the Mitigation Monitoring Program attached hereto dated November 2005 in accordance with Section 21081.6 of the California Public Resources Code.
11-29-05 - File to Planning and Land Use Management Committee Clerk OK
11-30-05 - File in files

[LAMetroGuy]

By ANDY FIXMER

Los Angeles Business Journal Staff

Sam Nazarian is learning the hard way that the path to becoming a nightclub magnate in Los Angeles isn’t all glitter and glam.

The budding nightlife entrepreneur’s company, SBE Entertainment Inc., is attempting to weave together a network of flashy restaurants, swanky clubs and hotels across L.A. County – most styled by renowned designer Philippe Starck.

However, Hollywood, of all places, may be jeopardizing that vision. The community, which has been revitalized by nightclubs, is giving Nazarian’s company its fiercest resistance yet – to a $10 million, three-story nightclub at 6363 Hollywood Blvd. called Shelter II.

Nazarian’s company directed all calls to Reza Roohi, president of SBE’s restaurant subsidiary, who acknowledged that the firm had never witnessed such resistance.

“Everybody is opposing it,” said Roohi, who was locked in meetings last week drumming up support for the project. “Everybody is going crazy.”

The opposition will come to a head Tuesday when the Hollywood zoning administrator holds a critical hearing, with interests ranging from other club owners to some prominent property owners and neighborhood activists planning to testify against it. The project can’t move forward without approval, though any decision will likely be appealed.

Opponents complain Hollywood can’t sustain another nightclub. At 2 a.m., when the nightclubs and bars close, the main thoroughfares come to a standstill as 30,000 to 40,000 people try to leave the area simultaneously and rowdy – sometimes inebriated – club goers strain the police force.

“This isn’t about Sam Nazarian; it’s clubs in general,” said Chris Breed, an L.A. nightlife veteran who owns the Hollywood club White Lotus. “There’s an overabundance of them and Sam has come in too late.”

However, Nazarian isn’t without his supporters. Council President Eric Garcetti, whose 13th District includes the proposed site of the nightclub, favors the project.

Garcetti spokesman Josh Kamensky said SBE has cleared every hurdle the council office had set for the project. That includes securing parking, opening a restaurant for lunch and dinner and including a daytime community art program.

“He has been very responsive,” Kamensky said. “The Nazarian proposal is an interesting project and we have worked closely with him and set high thresholds that the developer has met along the way.”

Nightclub overload
The new crop of high-end nightclubs was a welcome site a decade ago in Hollywood. The establishments attracted crowds and celebrities to a long-neglected community that was starved for investment.

The clubs installed security and better lighting around their properties, which by many accounts contributed toward making the area a safer nighttime destination.

However, the clubs have also exacerbated Hollywood’s challenges, according to Officer Michael Rose, who works Hollywood vice and is the station’s alcohol beverage control coordinator. The nightclubs have led to increased instances of public intoxication, fighting, aggravated assaults, date rape and driving under the influence, he said.

“The nightclub owners realize they’ve created the boom and they’ve created the monster,” Rose said. “If we plan to keep all our interests afloat, they have to help slay the beast and deal with these problems.”

There are 430 state issued alcohol permits in Hollywood and 80 permits in the blocks between La Brea Avenue and Gower Street, and Yucca Street and Selma Avenue, according to Rose.

As alcohol-related problems began to rise, the number of alcohol permits issued by the California Alcohol Control Board has been restricted to restaurants as local officials have put their foot down. Last month a San Diego nightclub owner failed to get approval for a venue at the former Frederick’s of Hollywood flagship store.

Still, SBE believes it will be able to get a permit. As of last Thursday, despite Rose’s concerns, the Los Angeles Police Department hadn’t yet taken a position on whether to support or oppose SBE’s plans.

Parking is another divisive issue. Most lots have exclusive agreements with three or four venues to provide parking spaces. “If the lots try to fulfill those contracts, they would be operating at 400 percent capacity,” Rose said.

But Roohi said SBE has satisfied its parking requirements and has an exclusive lease for 180 spaces in a parking lot on Vine Street just north of Hollywood Boulevard – 20 more spots than it is required to provide.

Other clubs can continue using the lot until Shelter II opens in roughly a year, but then those clubs would be displaced, Roohi said. SBE also has pledged to support the Holly Trolley, a bus service designed to get club goers around Hollywood without having to move their cars.

“We have more than enough parking,” he said. “We have done everything that’s been asked of us.”

Rose isn’t so sure. Nazarian’s club will be allowed to hold 1,400 people, and on a busy night, Rose believes the destination could add roughly 700 cars to the area. “You don’t see too many cars with more than two people in them,” he said.

Meanwhile, Breed and others argue it’s unfair that SBE is taking over the parking spaces of clubs that had been open longer and taken early risks on Hollywood. Club owners have been labeling SBE the “Wal-Mart of nightclub operators,” because they believe Shelter II is so large it would put smaller clubs out of business.

Elizabeth Peterson, owner of a Hollywood land use consulting firm, said in order to not displace existing venues, any new nightclub should have to build its own parking. “You can’t just displace other venues,” Peterson said. “That’s going to make a bad situation worse.”

Making waves

Nazarian’s Hollywood club is destined to make a stir.


SBE, which signed a 30-year lease with the property’s owners, has already spent millions of dollars on designing and engineering the nightclub.

The club would convert a one-story, wood-frame store into a steel reinforced two-story nightclub, where the rooftop would be outfitted with a restaurant and a bar. Broad storefront windows would contain elaborate displays that will change seasonally.

“Hollywood Boulevard during the day time looks like a ghost town,” Roohi said. “We want to dress it up a little bit.”

Not all nightlife venue owners are against SBE’s proposal. Mike Malin, a principal in the Dolce Group, which owns hotspot restaurants Geisha House and Bella on Hollywood Boulevard, said he would like to see Nazarian prevail.

Malin said business only gets better every time a nightclub opens. Clubgoers come to Hollywood early to eat dinner before going dancing, he said. “The more nightclubs, the happier me and my partners are.”

Still, Breed would like to see a moratorium on permits for nightclubs in Hollywood. He believes that would force out-of-area operators to buy existing clubs and therefore maintain a balance.

Roohi said the proposal is a farce aimed at forcing SBE to pay inflated prices for existing locations. He said several club owners who oppose SBE’s plan have been offering to sell their venues to the company. “That seems to be a pretty clear conflict of interest,” he said.

And if SBE doesn’t get approval from the zoning administrator this week, Roohi said SBE could walk away from the project.

“It’s crazy to see the investment we’re putting forward and the problems we’re running into with other people,” he said. “It’s getting to the point where I would recommend to my partners that if we’re not wanted, then why waste our time and our $10 million investment.”

[TrippLA]

[QUOTE=Bernd]

Originally Posted by ferneynism2

San Francisco, natch.

wow, reminds me that looks much like in central of Pacoima.

[LongBeachUrbanist]

“This isn’t about Sam Nazarian; it’s clubs in general,” said Chris Breed, an L.A. nightlife veteran who owns the Hollywood club White Lotus. “There’s an overabundance of them and Sam has come in too late.”

Let me be the latest to call "Bullshit!!!". There are too many clubs, says the clubowner. Yeah, that makes sense.

If the resources aren't there for police and transit, then the resources should be allocated. Hollywood Boulevard is a mecca for locals and tourists alike, and generates tons of tax revenues for the City. It is a thriving success story. We should not be trying to kill this success, just because the existing clubs don't like the competition, or because residents who chose to live near Hollywood Blvd. don't like noise.

[LosAngelesBeauty]

Amen Brotha!

[POLA]

eh, I can think of a lot of things hollywood needs and a night club isn't one of them. Plus, too many and this place will really be a ghost town before six. Also, sinse night clubs don't rely on locals for their patrons, those bastards don't give hoot about the area so I really am not shedding any tears because someone can't open a club.

[Wright Concept]

^ Such as an Urban Supermarket/Farmer's Market.
Well what needs to happen is some kind of street beautification in Hollywood at least along Hollywood where the Walk of Fame stars are. And if funds could be scraped together to have some Police officers on the Beat through Hollywood. That would certainly add an civic investment into Hollywood. I mean Hollywood is facing the exact same issues Downtown are having with the need to stabilize all of these new residents and visitors.