Hollywood Hills Icon Sells for Nearly $40 Million
Famed Yamashiro Restaurant Building and Adjacent Apartments Sell in All-Cash Transaction
After two false starts to sell the property in the past five years, the sale of the landmark Yamashiro Restaurant and Hollywood Hills Hotel & Apartments has been negotiated by Colliers International for a price approaching $40 million.1999 Sycamore LLC , a diversified hospitality investment and development firm, based in Asia was the buyer.
As one of the most recognizable properties in the city of Los Angeles with pathways lining Japanese gardens and ancient structures including a historic pagoda that is arguably the oldest structure in the state of California, the Yamashiro restaurant building and the Hollywood Hills Hotel property has sat fortress-like above Hollywood since 1914. It has undergone several major renovations through the years and remains a popular dining, living and hotel property.
Colliers Executive Vice Presidents Stephen Algermissen and Kitty Wallace negotiated the sale after receiving more than 20 written offers and another 10 verbal offers for the family owned property. The Buyer was selected for its financial stability, ability to close the transaction in a timely fashion, and its plans to maintain the character of the property, and its history, while adding many of its signature touches to it. The Buyer currently owns and operates hotels, restaurants, and meeting and events facilities in China and around the world.
“We were impressed with the Buyer’s passion for renovating historic assets across the globe.”, said Wallace who has sold numerous landmark historic apartment buildings including Ravenswood, La Fontaine, Savoy and Brockman Lofts. “The Buyer offered an all-cash deal and immediately put up a substantial non-refundable deposit. That, coupled with their impressive execution of similar assets, quickly elevated their offer amongst the top of our stack.”
Algermissen and Wallace, both among the most senior and successful brokers at Colliers, embarked on a sophisticated marketing campaign that included aerial drone footage, professional photography, and detailed information about the history of the property including what approved uses had been granted by the city by right.
“It was among the most interesting properties with which I’ve been involved in selling in my career,” said Algermissen, who recently has been participated in sales of the Gucci Building in Beverly Hills and the Converse building in Santa Monica. “We have been asked over and again what the Buyer plans to do with the property, and the only response I have at this early point is they just don’t know.”
What is known is that the Buyer has developed properties in China and around the world that would fit the profile of the Yamashiro. The Buyer owns and operates resort hotels which are built near beautiful scenic and historic sites.
“The property is a perfect fit for this buyer as the site has an operating restaurant, an existing hotel and post-modern construction apartments all situated on Asian-themed grounds on a 7 acre hill in one of the hottest markets in the country with 360 degree views of Los Angeles,” said Wallace. “Despite the zoning being very favorable, it is unknown whether any additional development will be constructed. It is just too soon and the current structures, with strategic renovations, make the acquisition a financial and real estate success just as they sit.”
Meantime, in terms of the closed transaction, this Buyer rose to the top of an elite list of buyers that spanned offices from across the globe. Every offer had to be scrutinized, studied and presented to the client, and they included offers from developers, wealthy individuals and investors from the U.S., Italy, Hong Kong, the U.K., Canada and France.
“We conducted more than 100 tours of the property and from those we attracted more than 20 qualified offers from buyers for a wide variety of uses,” said Algermissen. “Proposals ran the gamut from a conference center, a multi-family development that would have seen hundreds of apartments, a Yoga retreat and spa, mixed residential and retail, and, additional cottages, restaurants, and most surprisingly, we saw a proposal from one potential buyer who wanted to build a-family mansion on the site.”