Land in Hollywood is trading for as much as $600 psf

Area saw $16.5 in land sales so far this year

TRD LOS ANGELES /
Mar.March 04, 2016 01:00 PM

With $16.5 million in Hollywood land sales already recorded for 2016, there’s promise of a decently heated market. In the first quarter alone, sales have nearly surpassed the $18.4 million total dollar volume of five years ago—evidence that since 2011, Hollywood land trading has been heating up, even if it’s been more of slow burn than a roaring flame.

“It’s going up, mostly,” says Rob McRitchie, senior vice president of JLL. “Hollywood’s interesting. As far back as the early 2000s, it was still a pretty tough stretch of market. Most entertainment companies wouldn’t look at it, they would opt for Burbank or Westside. But [in the last five years], there’s been a trend of moving back into urban areas.”

In 2015, $109.8 million in Hollywood land changed hands at an average of $206.85 per square foot, up from $16.7 million in 2013, which net an average of $84.28 per square foot, according to data from JLL. It’s a significant, steady increase from the average land price per square foot of $102.64 in 2011.

But these average square foot sales of $206.85 are simply that, “average,” says McRitchie. “Those numbers are quite low compared to marketable land that’s trading in Hollywood.”

McRitchie has witnessed trades at $600 a square foot, including the former Jack in the Box lot at 6409 Sunset Boulevard, on the corner of Sunset and Cahuenga Boulevard, that sold for $13.8 million to R.D. Olson in November 2014. The Irvine-based developer is hoping to get entitlements for a hotel on the site, which will continue to be occupied by Jack in the Box until 2019. McRitchie also points to other sites north of the Santa Monica Boulevard and Highland area, which have been fetching better-than-average prices.

“The overall trend has plateaued around the late $500s, early $600s on unentitled land because most of the blocks of land have traded,” he says.


Related Articles

arrow_forward_ios
Architect Simon Park and a rendering of the project (Credit: SSPSTUDIO ARCHITECTURE & URBAN DESIGN)

Boyle Heights slated for another mixed-use project

Monica Rodriguez orchestrated the nixing of a residential project set for the Verdugo Hills Golf Course (Credit: Google Maps, Wikipedia)

The threat of fire doomed this Tujunga resi project. Now the developer will sue

6550 South Normandie Avenue (Credit: Google Maps)

Haroni Investments to turn parking lot into new apartments

Michaekl Rapino of LiveNation, Richard LeFrak, and 7060 Hollywood Boulevard

Live Nation’s Hollywood exit leaves big hole for LeFrak

Council President Herb Wesson and a rendering of District Square

City will draw up “anti-displacement zone” ordinance

David Ryu with a Little Tokyo Galleria rendering

Under the (RE)influence: Councilman’s campaign funds scrutinized

The North Hollywood and Topanga stores (Credit: Vallarta Supermarkets)

Vallarta Supermarkets plans huge grocery store in Van Nuys

Governor Gavin Newsom and Senator Nancy Skinner (Credit: Getty Images and iStock)

Developers rejoice: Newest state law aims to boost housing production

arrow_forward_ios
Loading...