Onni Group picks up Hollywood office property with big potential

Onni Group has purchased a historic development site in Hollywood.

The Toronto-based investor and developer purchased the nearly two-acre site at 7000 Romaine Street and 948 Sycamore Avenue for $40 million, according to Commercial Observer, which cited sources familiar with the deal.

An entity led by David Bass previously owned the property, which includes a 66,900-square-foot building, offering creative office space as well as a parking lot with 100 spaces.

Under the city’s Hollywood Community Plan, more than 268,000 square feet could be added to the existing building.

Onni Group has not yet disclosed what it intends to do with the site. According to Cushman & Wakefield, which brokered the deal, the site could be repositioned into studio space, post-production, gaming or medical office space — all popular routes for real estate investors.

The site dates back to 1931, when it was first commissioned by Howard Hughes. The businessman first used the building for his production firm, Multicolor FIlms, and then as the headquarters of his various business ventures.

The Los Angeles City Council is set to designate the creative office building as a historical-cultural monument, voting to support the designation in September.

Onni Group has mostly focused on residential and retail plays in recent months, picking up a 1.2 million-square-foot mall in Burbank for $136 million in November and a 6.2-acre strip mall for $68 million in December, with plans to turn the latter into apartments.

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[Commercial Observer] — Isabella Farr