LOS ANGELES- Commercial real estate company Passco Cos. has started repositioning the Promenade at Howard Hughes Center into a an entertainment destination to serve a new consumer base that has migrated to the area following the Silicon Beach movement, GlobeSt.com reported in an earlier story. The shift includes plans to transform the community into a mixed-use property over the next several years. GlobeSt.com sat down with Passco Cos. director of leasing Howard Wong to learn about the timeframe for the repositioning and the market trends behind this big decision.
GlobeSt.com: Why have you decided to reposition the center into an entertainment destination? What were the market trends behind this decision?
Howard Wong: The local area has seen a great demographic shift due to the Silicon Beach movement, with a large number of entertainment companies having recently relocated in the area. These companies have caused an influx of new, young residents creating a new demand for entertainment. In addition, we are also seeing a demand from the companies themselves for their own corporate entertainment needs.
We wanted to capitalize on the success of our luxury movie theatre tenant, who has already made the Promenade at Howard Hughes a Los Angeles destination. The theatre was the first to introduce the luxury theatre concept in the Los Angeles market, and now being recently purchased by Cinemark, a major national movie theatre company, we only anticipate continued success.
In addition, the center is located in the heart of the major Los Angeles tourist region, with many of the major hotels nearby, creating a demand by tourists, who are always seeking entertainment options. With so much demand for entertainment from local residents, businesses and tourists, repositioning Promenade at Howard Hughes was the logical next step for the property to fill the needs of the local market.
GlobeSt.com: Obviously, repositioning the center cannot happen overnight. How will this transition play out and what is the expected timeframe?
Wong: We already have a great foundation with our existing restaurant tenants and the Cinemark theatre, and now expect to reposition the property into an entertainment destination over the next 12 months. Starting off our repositioning effort we have signed two promising national tenants, Buffalo Wild Wings and Dave & Busters, and anticipate Buffalo Wild Wings will open in November 2013, with Dave & Busters to follow, opening in January 2014.
GlobeSt.com: Our previous story mentions that the Howard Hughes center is moving toward becoming a "self-contained" community. What is valuable about becoming a mixed-use community?
Wong: With the Howard Hughes Center slated to add both multifamily and office space over the next few years, the demand for local entertainment will increase dramatically. Responding to this demand, the repositioning of the Promenade at Howard Hughes' will provide residents and businesses a place that will meet their entertainment needs for both their work and personal lives.
The market as a whole is definitely trending towards mixed use, especially in Los Angeles where there is a great demand for urban locations where residents can work, eat and play all within walking distance.
GlobeSt.com: What types of tenants are you seeking to fill the space?
Wong: As an entertainment destination, we will be seeking tenants that are unique and provide the entertainment options this market is lacking. We will not only be looking for uniquely branded destination restaurants like Buffalo Wild Wings, but also other entertainment venues such as luxury bowling, piano bars, comedy clubs and live entertainment venues.
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Kelsi Maree Borland
