A 463,000sqft shopping mall in the centre of Hollywood, Los Angeles, has been acquired by Hong Kong-based fund Gaw Capital and San Jose-based developer DJM.
The price was not disclosed, but the buyers said the sale of Hollywood & Highland was the largest single-asset retail transaction to take place outside Manhattan in nearly three years.
The retail and entertainment centre, located on Hollywood Boulevard, was sold by CIM Group. Financing has been provided by Natixis.
Gaw Capital and DJM plan to overhaul the 7.6-acre site that was in 2001.
“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.”
Goodwin Gaw, chairman and managing principal of Gaw Capital Partners, said: “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 recognised 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.”
CIM acquired Hollywood and Highland in 2004.
Shaul Kuba, co-founder and principal of CIM Group, said: “CIM’s repositioning of Hollywood & Highland increased its visibility and provided a stable anchor for the resurgence of Hollywood.
“The development was envisioned as a catalytic project that would propel private investment and development in the community. We believe we have fulfilled this mission, and established Hollywood & Highland as a major economic generator for the City of Los Angeles.”
The sale does not include the Dolby Theatre at Hollywood & Highland, a 180,000sqft, 3,400-seat live-performance auditorium.