Earlier this year, we got a peek at one of the many new hotels coming to Hollywood—a seven-story, 175-room project that was expected to be one the the Tommie brand of hotels. Local developer Five Chairs had paid $8.3 million last year to buy the land. But now, reports The Real Deal, the site along with the rights to build a hotel has sold to Oxford Capital Group for $16.5 million.
Those entitlements made it more lucrative to sell the site than build on it themselves. According to one of the Cushman & Wakefield agents who represented the seller, "[W]ith apprehension in the development world about the Neighborhood Integrity Initiative, an already-entitled site became really desirable. I would say we saw more activity than usual because of fear."
The Neighborhood Integrity Initiative is a ballot measure that would place a two-year moratorium on the construction of most tall buildings, ones that require special exemption from the city's height requirements.
Oxford plans to develop a luxury hotel with 200 microunit rooms. If "luxury" and "micro unit" sound like opposites, that’s not necessarily true, argues the agent who repped the property’s seller. "It’s not about the room — you go to the room to sleep, shower and bang it out," he said. "You don’t need it for much more than that.
The hotel that Oxford is developing will be called the Godfrey Hotel Hollywood. This would be the third Godfrey hotel in the brand, with other locations in Chicago and Boston.