HOLLYWOOD—February 27, 2004—Continuing its investment activities along world-renowned Hollywood Boulevard, CIM Group's CIM Urban Real Estate Fund has acquired Hollywood & Highland from Trizec Properties, Inc. for approximately $201 million. Opened in November 2001, Hollywood & Highland is an entertainment, retail and hotel complex located in the heart of Hollywood.
The purchase includes the world-famous Kodak Theatre, home to the Academy Awards®. The addition of Hollywood & Highland to CIM's portfolio brings its Hollywood presence to eight properties with approximately 1.7 million square feet, most of which surround Grauman's Chinese Theatre, the epicenter of Hollywood.
"We have great confidence in the revitalization of Hollywood Boulevard and believe that the prospects for this centrally located property are most encouraging," said Shaul Kuba, principal and co-founder of CIM Group, based in Hollywood. "Trizec deserves credit for completing a complicated, one-of-a-kind project that already has made a huge difference in the outlook for Hollywood Boulevard. We will build on that foundation, investing additional resources to develop its full potential."
Hollywood & Highland consists of over 387,000 square feet of retail space leased to national, regional and local retail tenants, a variety of restaurants including the Wolfgang Puck Catering and Events, several of Hollywood's hottest nightclubs, the popular upscale bowling alley lounge, Lucky Strike Lanes, and a six-screen state-of-the-art cinema adjacent to the world-famous Grauman's Chinese Theatre.
The complex also contains 65,000 square feet of unique indoor and outdoor banquet facilities for conferences and special events including an elegant Grand Ballroom, site of the annual Oscars® Governors Ball. The ballroom, catered by celebrated chef Wolfgang Puck, is now one of Los Angeles' favorite venues.
Along with the Academy Awards and other awards shows, the handsome Kodak Theatre offers a year-round program of concerts, Broadway shows and theatrical events in its 180,000 square feet.
"CIM's vision and investments will transform Hollywood & Highland into an inviting destination for residents of Hollywood and Los Angeles," Kuba added, "a place to gather and have a great time, for shopping and dining, relaxing at a nightclub or movie, or hosting a social event in one of the banquet facilities."
Kuba noted that tenant interest in Hollywood is on the upswing as evidenced by leasing activity at CIM's other projects including the TV Guide Hollywood Center across the street and nearby retail and restaurant properties.
"Retailers and restaurateurs on the Boulevard and at Hollywood & Highland are experiencing improved sales, some in double digits," Kuba reported.
In addition to the retail and entertainment complex, CIM acquired the adjacent Renaissance Hollywood Hotel, a full-service luxury hotel that opened to rave reviews in early 2002 after the existing structure was completely gutted and rebuilt. . With 637 guest rooms, and numerous banquet, reception and conference rooms, it has proven to be a favorite with locals, tourists and business travelers, Kuba pointed out.
"The proximity of the Renaissance Hollywood Hotel for out-of-town guests, abundant parking for local residents and visitors, and easy access to rapid transit via the Hollywood & Highland Red Line Metro stop provide a level of convenience unequalled by any property in Los Angeles," concluded Kuba.
Additional information on Hollywood & Highland and the Renaissance Hollywood Hotel can be found on their websites: www.hollywoodandhighland.com and www.renaissancehollywood.com.
CIM Group, a full service real estate investor and operator based in Hollywood, was organized in 1994 to revitalize the traditional downtown areas in large cities and the main street districts within towns and suburban cities. A leader in California's urban renaissance, CIM Group has developed a premier portfolio of retail, urban housing, office and mixed-use properties in California's most popular destinations, including Santa Monica's Third Street Promenade, Old Pasadena and Birch Street in Brea, and is in the forefront of the revitalization of downtown Los Angeles, with its recent completion of the Gas Company Lofts at 810 South Flower Street and its plans to bring the first full service supermarket to the downtown area in 50 years. The firm manages the CIM Urban Real Estate Fund, a real estate investment fund with $676 million of equity capital from CIM Group and other investors, including the California Public Employees' Retirement System and the California State Teachers' Retirement System.
For more information, go to: www.cimgroup.com.