Development Sites Sell for $47M
Two parcels on the border of West Hollywood and Hollywood with redevelopment potential have sold for $46.5 million.
An unnamed local developer acquired the site; the developer already owns commercial properties nearby.
The acquisition included adjacent properties at 1000 N. La Brea in West Hollywood and 1011 N. Sycamore Ave. in Hollywood.
It is currently home to building materials company CEMEX, which will continue to occupy the site while the new owner of the property finalizes plans to develop it.
The transaction was handled by CBRE Group Inc.’s Dean Zander, Stew Weston and Chris Tresp.
“Because 1000 La Brea is one of very few remaining commercially zoned parcels of significant size in the market, it represents one of only a few opportunities to amass considerable density within West Hollywood and Los Angeles,” Zander said in a statement.
“We saw a considerable amount of interest for this deal.” He added that the property “could be developed into a luxury mixed-use apartment property, taking advantage of the area’s exceptional demographics and surrounding retail and lifestyle amenities, while the adjacent site at Sycamore Avenue is ideally suited for a creative office development.”
The area is near The Lot at Formosa studio campus, as well as other entertainment and life sciences properties. Companies near the sold sites include Sirius XM Holdings Inc., Live Nation Entertainment Inc. and Adam McKay’s Hyperobject Industries.
Asking rents for Class A office space during the first quarter of the year was $5.04 a square foot, far above the county average of $4.12 a square foot, according to data from Jones Lang LaSalle Inc.
The average rent for multifamily units in L.A. was $2,627 during the first quarter of the year, up 13.9% over the previous year, according to data from CBRE. Rents on the Westside were much higher.