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CIM Group sells Hollywood & Highland mega-complex for $325M: sources
CIM Group had owned the 7.6-acre mall and entertainment center for 15 years, where extensive upgrades are now planned
The U.S. arm of China-based Gaw Capital Partners and DJM Capital paid $325 million to buy the sprawling Hollywood & Highland Center, according to sources familiar with the deal.
The Gaw Capital USA and DJM acquisition for the massive mall and entertainment complex at 6801 Hollywood Boulevard was announced on Monday without a price.
The seller was CIM Group, which had owned the 463,000-square-foot complex since 2004. CIM is holding onto ownership of the iconic Dolby Theatre, an 180,000-square-foot auditorium which hosts the Academy Awards ceremony.
A spokesperson for CIM declined to confirm the purchase price. Representatives for Gaw and DJM did not immediately respond to requests for comment, but called it the largest single-asset retail transaction to take place outside of Manhattan in the past three years in their release.
Eastdil Secured brokered the deal.
Located at the intersection of Hollywood Boulevard and Highland Avenue, the retail complex is one of the busiest destinations in Hollywood. It spans five stories, and includes Dave & Busters, Sephora and Johnny Rockets, among others.
The new owners plan on renovating the 7.6-acre property over the next two years, according to a release about the deal. There are plans to upgrade the common areas, and incorporate “new concepts and uses” to draw traffic.
Abu Dhabi Investment Authority also had a stake in the complex. The sovereign wealth fund, known as ADIA, invested $142 million when CIM Group recapitalized the retail complex in June 2013. They listed the sprawling complex for sale in November. At the time, bids were expected to circle in the $300 million range.
Gaw owns several landmark properties in Los Angeles, including the 94-year-old MacArthur building in Macarthur Park, as well as the Bradbury Building. Neuehouse, an upscale co-working company, recently leased the entire second floor of the Bradbury Building.
San Jose-based DJM has been active on the Westside recently. Last year, Invesco Real Estate tapped the firm to take over all of property management, development, construction, leasing and marketing of the Runway Playa Vista, a 14-acre mixed-use development in Playa Vista.