"This project delivers a fabulous return on CRA/LA's investment," said Cecilia V. Estolano, CRA/LA Chief Executive Officer. "We put in $6 million and the City will get $167 million in tax revenue and $92 million in tax increment, all by 2036. A full $25 million will be set aside for affordable housing," she added.
"Like Hollywood & Highland accomplished on the west end, this project has served as the catalyst for redevelopment for the eastern gateway of Hollywood," said Hollywood Chamber of Commerce President and CEO Leron Gubler. "We commend the development team and W Hotels for having the foresight to recognize the potential of this long-ignored intersection. This development sets a new standard by which all new projects will be measured in Hollywood."
Presale of the W Residences to friends and family only quietly began several months ago and interest has been very strong. "The response was overwhelming with over a thousand buyers interested in 143 residences," said Jeff Cohen, senior vice president of Gatehouse Capital. "We are confident that the W Hotel will be similarly well received. We have a great team to whom we owe a lot on this project." Gatehouse has partnered with both HEI Hospitality and Hicks Holdings to provide capital for the project.
As a result of ongoing discussions with city leaders, Legacy Partners agreed to build 100 additional apartments. "Originally, the plans called for 275 apartments. However, given our proximity to the Red Line, Councilman Garcetti convinced us to increase the density of the apartment component," said Legacy Partners Senior Vice President Dennis Cavallari. "The result is a more vertical, aesthetically pleasing project that helps the city address its chronic housing shortage."
Construction is expected to take approximately 26 months, with completion targeted for the second quarter 2009.
About Legacy Partners: Based in Foster City, California, with a regional office in Irvine, California, Legacy Partners has been an industry leader in residential and commercial real estate for more than 35 years, acquiring, developing and managing a portfolio valued in excess of $4 billion. The company's expertise spans the industry spectrum to include property acquisition, development, financing, marketing, and property and asset management. From Legacy Partners' roots in Northern California, its portfolio extends to Southern California, Arizona, Colorado, Washington and Texas. Legacy Partners has more than 1,000 employees in six offices throughout the Western United States. For more information, visit www.legacypartners.com.
About HEI Hospitality: HEI Hospitality, headquartered in Norwalk, Connecticut, is a leading hospitality investment firm, which currently owns and operates 25 first-class and full-service hotels throughout the United States under such well-known brand names as Marriott, Sheraton, Westin and Hilton. For more information, please visit www.heihospitality.com.
About Gatehouse Capital Corp.: Gatehouse Capital Corporation, founded in 1995, is a real estate investment and advisory services firm based in Dallas, Texas. The company specializes in mixed-use developments and hotels. Gatehouse utilizes best-of-class institutional partners to design, build and operate its properties. Gatehouse developments include W San Diego, W Silicon Valley, W Dallas Victory Hotel and Residences, W Hollywood Hotel and Residences, Hyatt Regency Resort and Marina in San Diego, the Sydney High hotel and mixed-use development in Milwaukee, and the Joule hotel by Kimpton in Dallas. For more information about Gatehouse, please visit www.gatehousecapital.com.
About W Hotels Worldwide: W Hotels is a global lifestyle brand with 21 properties in the most vibrant cities around the world. Inspiring and indulging its guests with thoughtful, refreshing and stylish experiences, signature restaurants, bars and destination spas, W has become the fastest growing luxury hotel brand in the world. Each hotel offers a unique mix of innovative design, comfort and cultural influences from fashion to music to art and everything in between. W's first Retreat & Spa, W Maldives, opened in September of 2006 following a highly successful opening of the brand's first residential property, W Dallas Victory, in June of 2006. W Residences, offering the W lifestyle at home, have been announced for Austin, Las Vegas, Hollywood, South Beach, Fort Lauderdale, Phoenix, Scottsdale, Philadelphia, Downtown Atlanta and Hoboken. Internationally, W has announced plans for hotels in Vieques, Barcelona, Hong Kong, Shanghai, Santiago, Athens, Istanbul, Doha, Dubai-Festival City, Dubai-The Palm and Koh Samui. For more information, visit www.whotels.com.