Kilroy Realty Corp. (KRC), an owner of commercial real estate along the U.S. West Coast, said it plans to develop a $300 million office-and-apartment project in the Hollywood section of Los Angeles after acquiring land from the Academy of Motion Pictures Arts and Sciences.
The real estate investment trust bought the 4-acre (1.6-hectare) full city block, originally intended for the Academy Museum of Motion Pictures, for $46 million, Kilroy said in a statement today. The Los Angeles-based company is planning to seek permits to build a mixed-used campus for creative-media companies that will have about 300,000 square feet (27,900 square meters) of offices, 220 apartments and 15,000 square feet of retail space.
The project will bring Kilroy’s investments in Hollywood to about $800 million, said Bruce Beck, a spokesman for the company. The 19-square-mile (49-square-kilometer) area, once so seedy that Julia Roberts walked its streets as a prostitute in the movie “Pretty Woman,” has undergone a renaissance over the past two decades, spurring an influx of media companies.
“Hollywood is a market that fits the criteria and ingredients for a growth market in an urban location,” David Simon, a Kilroy executive vice president, said in a telephone interview. “It connects media, entertainment, social media, networking, and provides an environment with good public transportation.”
Kilroy will begin work on the project in about two years, and construction will take another two years, Simon said. With the acquisition, Kilroy has about 1.2 million square feet under development in Hollywood, including the $390 million Columbia Square project, a 675,000-square-foot mixed-use campus on Sunset Boulevard.
The site of Kilroy’s latest project has several vacant office buildings and landscaped open space used for public movie screenings. The motion-picture academy will lease the venue for special events until construction begins in about 18 months, Kilroy said. The Academy Museum is being built at the historic Wilshire May Co. building, a former department store adjacent to the Los Angeles County Museum of Art.
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