Multifamily development in the Hollywood area has been fewer than1,500 units since in the last dozen years, the developers say. The West Los Angeles market, which enjoyed increased leasing activity and 1,949 units absorbed in 2007, saw its net absorption rate decrease by 14 units in the first quarter of 2008, with the large volume of new construction over the last 15 months pushing the overall average vacancy rate up to 5.4% in the first quarter, the highest level in at least a decade, according to a recent report by Hendrick & Partners.

Hollywood's largest multifamily project is the mixed-use project Blvd6200, greenlighted by the Los Angeles City Council in July 2007. The 1.1 million sf project, adjacent to the Pantages Theatre, will provide more than 1,042 units of new rental housing, of which 10% are affordable, as well as live-work units. The $400-million mixed-use project will provide 40,000 sf of live/work/office space; 175,000 sf of retail/restaurant uses; 12,000 sf of open, public plazas; and adequate underground parking for all uses, including the Pantages Theatre. The Clarett Group is the developer of the project, which is situated on a seven-acre site that spans both sides of Hollywood Boulevard at Argyle Avenue east of Vine Street.