Development
Developed by Trizec Properties and with funds from the Community Redevelopment Agency, Hollywood & Highland opened after three years of construction in November 2001 and is part of an overall effort to revitalize Hollywood Boulevard.
The project is an example of joint development, in which a public agency leases the right to develop a parcel in exchange for improvements to the property, in this case, an enhanced portal to the Hollywood/Highland Metro Red Line station. TrizecHahn leased 1.35 acres (5,500 m2) of Los Angeles County Metropolitan Transportation Authority land for 55 years at a rate of $492,000 per year (with additional increases added every five years based on the Consumer Price Index) and four 11-year optional extensions.
Leading up to the construction of the development the City of Los Angeles was persuaded, through its Community Redevelopment Agency (CRA), to contribute at least $90 million in 1998 toward the initial construction of Hollywood and Highland. This was in addition to the costs of constructing the Red Line subway station below the mall.
Trizec Properties Inc. sold its interest in the development for over $200 million in 2004 to CIM Group. This was a substantial loss and represented an investment failure as it was estimated that Trizec spent at least $625 million to develop the center.
The current owner, CIM Group, describes itself as a premier real estate fund manager that makes private equity and/or debt investments in urban communities throughout North America. CIM is headquartered in Hollywood in the TV Guide Building located across the street from Hollywood and Highland. (CIM also owns and manages the TV Guide Building.) CIM has active projects in Los Angeles, West Hollywood, Orange County, Pasadena, Santa Monica, Oakland, Washington D.C., Austin TX, Boulder CO, as well as other communities. One of their better known projects in the Los Angeles region is the Third Street Promenade in Santa Monica. CIM rebranded Hollywood and Highland and repositioned the center with higher end tenants. In 2005, the center underwent renovations to add additional features such as escalators leading visitors from Hollywood Boulevard directly to the third floor of the central courtyard, new signage, and new stores.
Read more about this topic: Hollywood And Highland Center
Famous quotes containing the word development:
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—Mark Twain [Samuel Langhorne Clemens] (1835–1910)
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—Mary Barnett Gilson (1877–?)