DJM, a San Jose-based private equity real estate and development firm, and Gaw Capital USA, a Hong Kong and Los Angeles-based real estate private equity firm, have acquired Hollywood & Highland, the 463,000 square foot retail and entertainment center in the heart of Hollywood’s tourism and business district, from CIM Group for an undisclosed amount.
Natixis financing team led by Jerry Tang and Greg Murphy provided the financing package which included acquisition loan along with the future funding component. Advised by Eastdil Secured, Hollywood & Highland is the largest single-asset retail transaction to take place outside of Manhattan in nearly three years.
According to the CIM Group’s announcement the sale does not include the iconic Dolby Theatre at Hollywood & Highland.
Together, DJM and Gaw Capital USA plan to reimagine the 7.6-acre site over the next 24 to 30 months. Built in 2001, the project sits at the crossroads of Hollywood Boulevard and Highland Avenue, and adjacent to the acclaimed TCL Chinese Theater. Drawn to this covetable location and high-traffic volume, the team will upgrade the retail hub and focus on rebranding, upgrading common areas with an eye to creating more desirable gathering and programming spaces, ramping up entertainment events, optimizing the merchandise mix and incorporating new concepts and uses that bring excitement to retailers, visitors and other tenants at the property.
“The retail landscape has shifted, consumer tastes have adapted, and ‘New Hollywood’ is constantly redefining itself,” said Stenn Parton, Chief Retail Officer at DJM. “With Hollywood & Highland, we at DJM and Gaw Capital are eager to seize the opportunity to create, in the heart of Los Angeles, an environment where the iconic allure of ‘Old Hollywood’ meets the modern innovation of new media.”
“Our opportunity as the new stewards is to make Hollywood & Highland a 21st century destination—one that offers visitors a piece of Hollywood that is grounded by the needs of the modern consumer,” Parton added. “A fresh design and rebrand bolstered by relevant global brands, top-of-the-line food and beverage experiences, and a state-of-the-art digital concept is merely the beginning of our plans.”
Goodwin Gaw, Chairman and Managing Principal of Gaw Capital Partners, was a pioneer in Hollywood with his purchase and redevelopment of the Hollywood Roosevelt Hotel in 1995, just one block away from Hollywood & Highland.
About the acquisition, he said, “We are delighted to be partnering with DJM to acquire this iconic asset in Hollywood. Hollywood & Highland has enormous potential given its fantastic location at the gateway to new Hollywood. It is also next to Hollywood Roosevelt, our first refurbishment project that has long been recognized as an iconic, one-of-a-kind lifestyle hotel forged with distinction in Hollywood’s history. It marks an important milestone for Gaw Capital in the Los Angeles real estate market. We look forward to working with DJM to enhance the asset by leveraging the digital content revolution and innovative technology, to re-imagine this complex to become the new ‘town center for the Hollywood community’. We would also like to express our sincere gratitude to our co-investors for their tremendous support and trust us to make this transaction happen.”
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