Hollywood & Highland, the L.A. shopping center with old Hollywood-inspired decor and Oscars fame, has been sold by Hollywood-based CIM Group to DJM, a San Jose-based private equity real estate and development firm, and Gaw Capital USA, a Hong Kong- and L.A.-based private equity firm.
DJM and Gaw Capital did not disclose the purchase price of the 463,000-square-foot shopping destination. Built in 2001, the project sits at the intersection of Hollywood Boulevard and Highland Avenue, and adjacent to the famed TCL Chinese Theater, making it a prime tourist attraction. The sale does not include the Dolby Theatre, where the Academy Awards are held, which remains with CIM Group.
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, according to a release.
With expertise in experiential retail. DJM developed the beachside retail, hotel and residential project Pacific City in Huntington Beach, Calif, the Lido Marina Village in Newport Beach, Calif., as well as Runway in L.A.’s Playa Vista.
“The retail landscape has shifted, consumer tastes have adapted, and ‘New Hollywood’ is constantly redefining itself,” said Stenn Parton, chief retail officer at DJM, in a statement. “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.”
Trizec opened the shopping center in 2001, sinking about $650 million into the project, but the center never caught on with locals. Instead, L.A. residents gave the site’s design mixed reviews. In 2002, Trizec wrote down the value of its investment to $200 million and put the property on the block. In 2004, CIM Group, which developed Santa Monica’s Third Street Promenade, Old Pasadena and Birch Street in downtown Los Angeles, acquired the complex for $201 million.
At one time, luxury brand Louis Vuitton had a store on site, but now the merchandise mix skews more to specialty chains, including Hot Topic, Guess and Skechers.