July 1, 2016
By Dennis Kaiser
Connect Media has been tracking a number of projects in Hollywood, CA – both under development and those in the planning process. For decades, the market wasn’t considered one of the major CRE hotspots. Today, Hollywood is set to take center stage. Charles Dunn Company’s Bryan Glenn shares why things have heated up in the multifamily sector.
Q: What is unique to the Hollywood apartment market as compared to other key LA areas?
A: Hollywood offers one of Los Angeles’ most urban residential living experiences to its tenant base. Capitalizing on its reputation as the entertainment capital of the world, it features a number of trendy bars and restaurants, music venues, hotels, nightlife and retailers. Unlike other developing submarkets in Los Angeles, it is exceptionally walkable and already has public transit in place with multiple red line Metro stops connecting it to Downtown, Koreatown and the San Fernando Valley.
Q: How has the surge in office development and movement of companies to Hollywood impacted the multifamily sector here?
A: The surge in office development and movement of companies to Hollywood is working in conjunction with the amazing residential redevelopment we have seen in Hollywood, ultimately improving the overall desirability of the submarket. I believe the success of institutional-quality developments in recent years including Jefferson at Hollywood, Instrata Sunset Vine Tower, and Eastown have helped prompt more commercial development such as Columbia Square and Icon on Sunset. Commercial space in these developments becomes that much more appealing to large companies and in turn then helps propel additional residential development.
Q: How do you see this market faring over the next 12 months?
A: The trend of urbanization in Los Angeles is not going anywhere, and I believe that in addition to Downtown Los Angeles, Hollywood is in a great position to capitalize on it. Millennials, who make up such a significant part of the renter pool today, are drawn to newer construction buildings that offer amenities such as gyms, recreation rooms and often have retailers directly below them in mixed-use projects. Hollywood has all the fundamentals – density, amenities, walkability, employers, and public transit – for success. Over the next 12 months, I strongly believe Hollywood will continue to outpace other LA-area submarkets.