The Culver City DoubleTree by Hilton hotel is set to receive a $10 million makeover.
Owner Carlyle Group LP in Washington, D.C., plans to renovate the
guestrooms and other interior areas of the hotel at 6161 W. Centinela Ave. next year with a modern look in hopes of raising occupancy and rates, principal David Kingery told the Business Journal.
The company purchased the 368-room hotel in 2006, then a Radisson brand, for $45 million with plans to make improvements and increase the return for its investors. Carlyle renovated the common spaces, including the lobby, in 2008 and rebranded it as a DoubleTree last year.
As part of a refinancing of the property earlier this year, Carlyle received additional funds for the upcoming remodel of the guestrooms, bathrooms and corridors. San Clemente design firm Planning Design &Application Inc., which also handled the previous makeover, plans to include more modern furniture, wall coverings and flooring. The renovation is expected to begin next fall and be completed in February 2014.
Operated by Davidson Hotels & Resorts, the hotel had an about 84 percent occupancy last year, with nightly rental rates typically just below $200. Kingery said the renovations should allow the company to increase its occupancy and room rates, though he declined to provide projections.
In Los Angeles County, Carlyle also owns the Manhattan Beach Studios, and is partnered with Fifield Cos. and Cypress West Partners to build a 245-apartment building at 1340 S. Figueroa St. downtown.
Field’s Dream
Many thought developer Larry Field was crazy for starting work on a four-building creative office campus in El Segundo on speculation. But before even completing it, he’s already decided to make it larger.
Field recently purchased two more buildings to add to the campus, which will total 300,000 square feet at Utah and Alaska avenues.
He acquired two industrial buildings at 2330 Utah Ave. and 500 S. Douglas St., totaling 54,000 square feet, from the Wiseburn School District for an undisclosed amount in October.
Field plans to spend at least $2 million renovating the properties into creative office space, similar to the rest of his campus, bringing the entire renovation total to more than $17 million. He said he is confident that tech and creative firms will move in once the project is completed.
“I don’t say it to most people because they look at me strange, but I think it’ll be the most successful project I’ve done in 30 years,” said Field, founder and chief executive of Beverly Hills’ NSB Associates Inc. “The axiom in real estate is if you have a good location and long-term tenant and a property goes on the market nearby, just buy it; it will easily be used.”
Field, who purchased the first buildings for the project five years ago, completed the first of three phases of the campus earlier this year. Time Warner Inc. signed a 60,000-square-foot lease for its studios and offices related to its new Los Angeles Lakers-specific sports channel.
El Segundo is becoming an attractive alternative to popular and expensive Santa Monica for creative and tech companies, including Rhythm & Hues Studios Inc. and game company Konami. El Segundo offers ample space, while asking rates, at $2.44, are about $2 a month less than Santa Monica’s.
Field’s buildings, which should all be completed next year, will include ceilings of up to 22 feet, open floor plans, skylights and private outdoor patio spaces.
Headed for the Coast
Arizona State University is opening its first California location in an attempt to attract more students and build partnerships with West Coast firms.
The university signed a lease for 9,412 square feet on three floors of the four-story building at 725 Arizona Ave. in Santa Monica with landlord CIM Group. Financial terms were not disclosed.
ASU, which is one of the largest universities in the country by enrollment, plans to open enrollment management and technology transfer departments in the building when the lease commences early next year.
The university, which is expanding globally, had been looking for space in West Los Angeles since earlier this year.
CIM acquired the 37,572-square-foot building, known as Lincoln Place, in June for $20.2 million from Segal Enterprises. The property is close to the Third Street Promenade.
Staff reporter Jacquelyn Ryan can be reached at [email protected] or (323) 549-5225, ext. 228.
