Nearly $5B has been invested in Hollywood since 2000, according to Hollywood Property Owners Alliance executive director Kerry Morrison. But don't think the comeback is complete.
Hollywood is the "most exciting downtown in LA," and there are still a ton of opportunities for development, says Kerry, speaking yesterday to the more than 300 attendees at Bisnow's Future of Hollywood at the ritzy W Hotel on Hollywood Boulevard. The best may be yet to come.
Kerry says there are lots of old bank buildings, theaters and parking lots ripe for some adaptive reuse. And it seems like demand will be there. Only about 2,550 people lived in Hollywood prior to 2000, but some 12,900 residents are expected to call the city home by 2020. Developers have gotten the memo. There's about 700k SF of commercial space under construction right now. The estimates for 2020: an additional 1.2M SF.
Homeier & Law partner Michael Homeier spoke about EB-5, the US visa program that puts immigrants on the fast track toward a green card in exchange for job-creating investments. Funny enough, a $20M raise for the nightclub, restaurant and two bars at the W Hotel was his first EB-5 project. He says the program offers an attractive cost of funds for developers, and that he's seeing a growing trend of investors from countries such as India and Brazil. No surprise here, but Chinese money is 80% of the pie.
Polsinelli Law principal Masha Aliaskari (snapped here with Allen Matkins partner David Stone) is quick to point out that some big houses employ EB-5 financing, such as Marriott and Lennar.
And to increase awareness, Polsinelli and Homeier have joined forces with Wright Johnson and NES Financial. Here's Michael and Masha bookending NES EVP Reid Thomas and Wright Johnson principal Kevin Wright. Michael says growth in EB-5 has a ripple effect for the market, providing jobs for service providers and construction workers. Check back with us for more coverage of the event, including why Hudson Pacific is eager to buy in Hollywood.
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