A Chicago-based company is joining the flood of developers building hotels in Hollywood. Oxford Capital Group recently purchased a one-story office on North Cahuenga Boulevard that it plans to replace with a seven-story luxury hotel.
The site cost $16.5 million, according to a source familiar with the deal. That’s more than twice the $8.3 million that Hollywood-based hospitality development firm Five Chairs paid for the property in December 2015. Five Chairs securing entitlements to build a hotel pushed up the value, said Sarang Peruri, a principal at Oxford.
“That helped us get comfortable with making the bet here,” he said.
The project will be the company’s first foray in Los Angeles. Oxford plans to open the hotel under its four-star Godfrey brand, modeled on sister sites in Chicago and Boston. The plan is to build about 200 rooms that integrate cutting edge technology. One feature will be the ability to check in via phone and go straight to the room, bypassing the concierge. Peruri also plans for the hotel to boast a stylish restaurant and rooftop pool, making it a nightlife destination.
“This part of Hollywood, we think is really on the precipice of taking off,” said Peruri, noting that a Dream hotel is slated to open just a couple of blocks away on Selma Avenue. The site is also around the corner from the ArcLight and down the street from Amoeba records.
With its first L.A. site claimed, Oxford is now looking for another L.A. acquisition, perhaps in downtown or West L.A., but with an eye on hitting the right price point.
“Of course we want to expand our brands and create compelling hotels in great locations, but we’re first and foremost smart real estate investors,” said Peruri. “We are patient and don’t like overpaying.”
Oxford plans to begin construction sometime next year, according to Peruri. The company represented itself in the deal, while Mike Condon Jr. of Cushman & Wakefield represented the seller.
Hollywood has 16 additional hotel developments underway, according to a list compiled by Curbed L.A.
Real estate reporter Daina Beth Solomon can be reached at [email protected]. Follow @dainabethcita on Twitter for the latest in L.A. real estate news.
