The W Hollywood Hotel & Residences at Hollywood Boulevard and Vine Street is still on target for its Dec. 3 opening. Given the recession and the massive size of the $350 million development, that’s a feat worth noting.
The mixed-use development, which includes 143 condos, 305 hotel rooms along with retail space, restaurants and nightlife options, is being developed by Gatehouse Capital Corp. of Dallas and HEI Hospitality LLC of Norwalk, Conn.
Condo sales began in mid-2007 and so far, about 40 are in escrow; the deals should close once the project is completed in October, said Gatehouse President Marty Collins. While less than one-third of the units have been sold, Collins said he is pleased with the progress.
“These times are admittedly challenging and somewhat difficult,” he said. “Do I feel good about it? Yeah, I feel good about it. It’s still Hollywood and Vine and it’s still W.”
Condos start at about $800,000 and hit the $10 million range for some penthouses. Collins said while prices haven’t been lowered as the real estate market has struggled through a protracted downturn, the developer instead is offering optional amenities such as dog walking or maid services to entice prospective buyers.
“I don’t think price is the big inducement,” he said. “This is a product at a certain (high-end) segment in the market.”
Adjacent to the project, Foster City-based Legacy Partners Inc. is finishing its 375-unit apartment project at 1600 Vine St. That $250 million project, which has about 30,000 square feet of retail space that will include a Trader Joe’s, shares subterranean systems and parking with the W development.
Tim O’Brien, senior managing director of Legacy, said the development will open in November. He said that the rental rates haven’t been set yet but will be “consistent with the market.” Leasing will start at the end of summer.
Downtown Deal
Taiwan Business Bank of Taipei renewed its 9,460-square-foot lease at U.S. Bank Tower, which is owned by L.A. real estate investment trust Maguire Properties Inc., earlier this month. The office is the bank’s only branch in the United States.
The 10-year deal at the 633 W. 5th St. property in downtown is valued at $3.3 million. The lease will commence Sept. 1.
The start rate of the lease was not disclosed, though broker Jonathan Larsen of Transwestern, who represented the bank, said that his client was pleased with the terms of the deal. The bank is an original tenant of the tower, which opened in 1990 and is the tallest building in Los Angeles.
“All things being equal they wanted to stay in the U.S. Bank Tower,” Larsen said. “It is a very prestigious building known around the world.”
Patrick McRoskey of Maguire Properties said that smaller deals such as the bank lease are very important, even at a building with 1.4 million square feet of leaseable space and some tenants that occupy more than 100,000 square feet.
“It’s absolutely critical to us,” he said. “You can’t afford to lose tenants.”
J.D. DeRosa and Suzanne Lee of Transwestern also represented the bank in the deal. Lalo Diaz also represented Maguire in-house.
Legal Lease
Ballard Rosenberg Golper & Savitt LLP, a labor and employment law firm, has inked a 15,943-square-foot lease at 500 N. Brand Blvd. in Glendale and will relocate from Universal City. Terms of the deal with landlord CB Richard Ellis Investors LLC, an affiliate of L.A. real estate services company CB Richard Ellis Group Inc., were not disclosed. The lease will commence July 1.
Doug Marlow of CB Richard Ellis Group, who represented the tenant, said that Ballard Rosenberg liked the space because it was previously occupied by another law firm.
“So their tenant improvement dollars went a lot further,” Marlow said.
CB Richard Ellis Investors acquired the property in December when it purchased a 1 million-square-foot real estate portfolio from ING Clarion Partners LLC. The 419,760 -square-foot property, which includes 23- and two-story buildings, is about 75 percent leased.
Michael Weiner of Daum Commercial, who represented ING Clarion when it owned the property, handled the landlord side of the deal.
Staff reporter Daniel Miller can be reached at [email protected] or (323) 549-5225, ext. 263.
