(Save the dates: RealShare Apartments East comes to the Hyatt Regency in Miami, FL, on February 26, and RealShare Los Angeles comes to the Hyatt Regency Century Plaza in Los Angeles, CA, on March 27.)
WEST HOLLYWOOD, CA-Marriott International has purchased a fee simple interest in a 1.37-acre land parcel at the southeast corner of Sunset Blvd. and Doheny Dr. here for $31.5 million. The property is fully entitled for the development of a 190-room hotel and residences with ancillary amenities, including restaurants, night club and a rooftop pool and bar.
Marriott has announced that it will be developing its West Coast flagship of the EDITION brand hotel at this West Sunset Strip location. EDITION hotels are being developed in Miami Beach, London and New York, as well. The EDITION is Marriott's new luxury lifestyle brand that was conceived in conjunction with Ian Schrager. The development of this property at this location will offer unobstructed views of Hollywood Hills, the Los Angeles basin and Pacific Ocean from its guestrooms and residential suites.
Beverly Hills-based real estate investment-banking firm Sonnenblick-Eichner Co. arranged for the sale of the parcel to Marriott. “This site, at the corner of Sunset and Doheny, is arguably the best development site in Los Angeles for a luxury hotel and residences,” said David Sonnenblick, a principal of Sonnenblick-Eichner, in a prepared statement. “We had significant interest from other hotel companies' desirous of having a presence in Los Angeles.”
Elliot Eichner, also a principal of Sonnenblick-Eichner, added, “We were initially engaged by the fee owner to arrange for joint-venture equity, construction financing, a brand/operator, and a qualified luxury hotel develop to build the project. The final analysis was that the best execution on behalf of the owner was to sell the fully entitled site to Marriott International.
As GlobeSt.com previously reported, the West Coast hotel sector continues to strengthen, following global trends. “I'd say the state of the West Coast hotel market is very strong, and it's continuing to improve,” Tony Muscio, SVP of JLL Hotels, told GlobeSt.com in September 2012. “You have RevPAR continuing to increase, thanks to occupancy fueled by group, corporate and leisure demand. Also, there's a lack of new hotel supply, so not as many hotel rooms are being built, which helps this dynamic. And finally, the high barriers to entry on the West Coast make it hard to build in many markets.”
Are there enough land parcels available for hotel development in Los Angeles? Leave your opinion in the comment box below.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
