Hollywood & Highland to be overhauled under new ownership
In the largest single-asset retail transaction to take place outside of Manhattan in nearly three years, Hollywood & Highland has been acquired by new owners with big plans.
DJM, a San Jose-based private equity real estate and development firm, in partnership with Gaw Capital USA, a Hong Kong and Los Angeles-based real estate private equity firm, have acquired the 463,000-sq.-ft. shopping center from CIM Group for an undisclosed amount in what they called “the single-asset retail transaction to take place outside of Manhattan in nearly three years.” The partners plan to “reimagine” the 7.6-acre site. Renovations are expected to begin in 2020 and be completed in 2021.
Built in 2001, Hollywood & Highland is located on Hollywood Boulevard and Highland Avenue, in the heart of Hollywood's tourism district and is adjacent to the famed TCL Chinese Theater. The new team plans to upgrade the retail center and focus on rebranding and 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 two companies said.
“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. 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.”
Natixis' financing team led by Jerry Tang and Greg Murphy provided the financing package which included acquisition loan along with the future funding component.
DJM and Gaw Capital formed a partnership playing to their respective strengths: Gaw Capital’s strength in capital markets and successful repositioning of assets around the world, and DJM’s deep understanding of the Los Angeles market, experiential retail and development. Advised by Eastdil Secured, Hollywood & Highland is the largest single-asset retail transaction to take place outside of Manhattan in nearly three years.