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Discussion Starter · #1 ·
Biggest Development in recent Hollywood history, right next to the Pantages Theater and accross the street from the W Hotel Development (another huge project)


Posted date: 2/2/2005
Pantages Owner Inks Deal for Massive Hollywood Development

By ANDY FIXMER
Los Angeles Business Journal Staff

The family that owns the Pantages Theatre has signed a ground lease with New York-based Clarett Group LLP and Prudential Real Estate Investors to develop a $300 million residential and retail project in Hollywood.

Last week, the Nederlander Producing Co. of America Inc. signed a 99-year ground lease with the developer, according to attorney Benjamin Reznik, a partner with Jeffer Mangels Butler & Marmaro LLP, who is representing the New York developer.

While details of the project are still being fleshed out, Clarett’s initial proposal calls for a mixed-use project with more than 1,000 residential units, including as many as 300 condos, above 200,000 square feet of shops and restaurants at the nearly 7-acre site on Hollywood Boulevard and Argyle Avenue.

There would also be an expansive underground garage.

After signing the deal, Clarett executives briefed local officials, including Councilman Eric Garcetti, on their plans for the site – currently a surface parking lot diagonally across the street from the theater.

Josh Kamensky, Garcetti’s press deputy, said the councilman viewed a presentation by Clarett officials but hasn’t taken a position on the project.

“We are always excited when people want to invest in Hollywood,” Kamensky said. “We look forward to working with them on this project as it moves forward.”

Helmi Hisserich, deputy administrator for the CRA’s Hollywood region, was also briefed by Clarett officials. If successful, the project would be the largest privately financed development in Hollywood’s recent history, Hisserich said.

“It’s a very significant deal for Hollywood,” she said. “It would be great if they pulled the development together.”

Beyond the surface parking lots, the Nederlander family owns a patchwork of properties extending east along Hollywood Boulevard from the Pantages that includes the Henry Fonda Music Box Theatre.

The family also owns the Wilshire Theatre in Beverly Hills and has a long-term lease with the city of Los Angeles to operate and manage the Greek Theatre in Griffith Park. Though the company is mostly based in New York, it is co-headquartered in Hollywood, the site of its concert promotion division.

The area surrounding the intersection of Hollywood Boulevard and Vine Street has attracted numerous new developments.

Next door to the Nederlander site, Gatehouse Capital Corp. and Legacy Partners Inc. are nearing final approvals to develop a $325 million complex of housing and retail anchored by a roughly 250-room W Hotel. Nearby condo conversions at the Equitable building and the Hollywood & Vine Plaza are also underway.

A timeline for the project wasn’t given, but other developers believe the project could feasibly be built in the same time period as the W Hotel project.

Since its inception in 1999, the Clarett Group has completed four high-rise condo buildings in Manhattan, and recently the firm formed a joint venture with Prudential Real Estate Investors.

Clarett officials couldn’t be reached and Nederlander attorney Neil Papiano, a partner at Iverson Yoakum Papiano & Hatch, wasn’t immediately available to comment. The Los Angeles Business Journal first reported negotiations on the deal in its Dec. 6 issue.
 

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Discussion Starter · #3 ·
none yet, but as soon as i find it ill post it here and on SSP. that corner is gonna rock. All they need to do is fill in the middle between vine and highland and add a local trolley between the two, from la brea to western (red line) to Sunset and back. wow that would be awesome for bar hoppers and clubbers, as well as tourist and locals.
 

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LA/NYC 02 25 05
HOLLYWOOD DEBUT
Peter Slatin


Moving to capitalize on a sizzling residential building market, a New York real estate team has secured a coveted Hollywood development plum from a New York owner with deep bicoastal roots.

Clarett Hollywood, an entity comprised of New York developer Clarett Group and Prudential Real Estate Investors, has quietly secured a 99-year ground lease from the Nederlander Organization on a seven-acre parcel surrounding the historic Pantages Theater at the eastern gateway to Hollywood Boulevard and a few blocks from where the Academy Awards are held in the Kodak Theater at Hollywood & Highland.

In what will be its largest development effort to date, Clarett is planning to build about 1,000 units of housing and 200,000 square feet of retail on the site, known as Hollywood and Argyle for the intersection it bestrides, over the next several years. Construction would not begin until some time in 2006.

The deal underscores the continuing importance of strong local relationships in real estate even as the broad industry moves toward national and global platforms in every facet of the business. Nederlander, which poured some $12 million into a renovation of the 2,600-acre Pantages just four years ago, has been assembling the land around it for a quarter century, notes Veronica Hackett, principal and co-founder of Clarett. “We’ve known the Nederlanders quite a while,” she adds. And one thing she knows about them is that “they prefer to own the ground” for their projects. “I knew how important that issue was for them, and it didn’t make a significant impact in the valuation of the site.”

Although Hackett declined to discuss what that valuation ultimately turned out to be, p some sources say the total price tag will end up at around $465 million, including acquisition. Clarett could convert up to a quarter of its leasehold to ownership in order to build for-sale housing, she says.

Hackett’s ties to the Nederlander Organization date back to her tenure at Park Tower Realty in the 1980s. That’s when New York-based Park Tower – in partnership with Prudential Real Estate - was steering the complex and controversial, 4 million-square-foot redevelopment of Times Square, where the theater family is a powerful presence. That project, with Park Tower no longer in a leading role, came to fruition in the late 1990s.

In the West Coast’s signature entertainment district, the Hollywood & Argyle site has long been courted by LA developers such as J.H. Snyder & Co. But their efforts and others were in vain, and last fall, the Nederlanders hired the New York and LA offices of Holliday Fenoglio Fowler to quietly market the site – and, says Hackett, they were seeking a specific price for their dirt. Clarett has been working to hammer out terms since the start of that process.

Clarett was founded in 1999 by Hackett and her late business partner Neil Klarfeld, another Park Tower veteran. PREI anted up in 2002, creating Clarett Capital, which set out to build between $500 million and $700 million worth of multifamily property; today, Clarett has 443 units that have either been built or are in process in New York City, with an aggregate value of some $600 million. The Hollywood project represents Clarett’s first venture outside the city, but Hackett anticipates further adventures on the Left Coast.

“Southern California has a very strong housing market,,” she says. “For us to venture out of New York, it had to be for a project of a certain scale and for a certain market. This has all of the attributes – it’s urban, it’s infill, and it’s in a dramatically and rapidly changing marketplace.”

To design what will undoubtedly be a well-scrutinized plan, Clarett has tapped another veteran of the Times Square wars – one who long ago moved to Los Angeles. Scott Johnson, of Johnson Fain Architects. Hackett and Klarfeld worked with Johnson two decades ago on the Times Square project. At that time Scott Johnson was part of the team working with Philip Johnson and John Burgee, who were mapping out Park Tower’s Times Square vision.

The Nederlander site is only the latest in a string of major residential and mixed-use projects along or just off of Hollywood Boulevard. Just west of the site, at Hollywood & Vine, a joint venture of Legacy Partners and Gatehouse Capital is nearing approvals for a $325 million mixed-use complex that will be anchored by a W hotel; that project will almost abut Sunset & Vine, another mixed-use project completed barely a year ago and just sold for $165 million. Other big local players, such as CIM and Kor Group, are moving ahead on residential conversion and retail projects.

Nederlander had been in no rush to sell because much of its site is occupied by parking lots, which, notes Johnson, “make such good money that demand [for development] has to outstrip the underlying value.” That’s what has been happening in and around downtown Los Angeles, where Johnson Fain is in construction for Forest City West on Met Lofts, a rare ground-up rental project in conversion-crazed downtown; land prices in the area around Staples Center soared last year, sometimes topping $300 a buildable foot for small parcels.

Whether or not speculation will reach that level, as far as redevelopment is concerned, “Hollywood’s time for that is here,” Johnson asserts. “There are two Hollywoods – the one you know from television and the movies [i.e., Hollywood], and the real Hollywood, which is quiet, with almost bucolic, low-rise back streets. This is a chance to knit those 2 visions together.”

Hackett says she will be pushing toward that vision, reaching for a pedestrian-friendly Hollywood. “We want to go in and listen,” she declares. “This is the ultimate urban infill site.”
 

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The Idea Sounds GReat Cant wait to see the plans
 
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