7901 W SUNSET BLVD., LOS ANGELES, CA 90046• A Developer has an opportunity to increase the current FAR to 3:1 ratio and creating additional project density similar to the 7950 Sunset

7901 W SUNSET BLVD., LOS ANGELES, CA 90046

GENERATIONAL OPPORTUNITY FOR MIXED-USE DEVELOPMENT SITE ON SUNSET STRIP

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TABLE OF CONTENTS

SECTION ONE 04EXECUTIVE PROFILE

SECTION TWO 10PROPERTY INFORMATION

SECTION THREE 24 MARKET OVERVIEW

© 2017 Hudson Commercial Partners, Inc. The information contained in this document has been obtained from sources believed reliable. While Hudson Commercial Partners, Inc. does not doubt its accuracy, Hudson Commercial Partners, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors, which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Hudson Commercial Partners, Inc. logo are service marks of Hudson Commercial Partners, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.

This Memorandum (“Offering Memorandum”) has been prepared by Hudson Partners based on information that was furnished to us by sources we deem to be reliable. No warranty or representation is made to the accuracy thereof; subject to correction of errors, omissions, change of price, prior sale, or withdrawal from market without notice.

This Memorandum is being delivered to a limited number of parties who may be interested in and capable of purchasing the Property. By its acceptance hereof, each recipient agrees that it will not copy, reproduce or distribute to others this Memorandum in whole or in part, at any time, without the prior written consent of Hudson Partners, and it will keep permanently confidential all information contained herein not already public and will use this Confidential Memorandum only for the purpose of evaluating the possible acquisition of the Property.

This Memorandum does not purport to provide a complete or fully accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information, which prospective buyers may need, or desire. All financial projections are based on assumptions relating to the general economy, competition and other factors beyond the control of the Owner and, therefore, are subject to material variation. This Memorandum does not constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of this Memorandum.

This Memorandum is being delivered by Hudson Partners to prospective purchasers with the understanding that all prospective purchasers will conduct their own independent investigation of those matters, which they deem appropriate in order to evaluate this offering. Additional information and an opportunity to inspect the site will be made available to interested and qualified prospective purchasers. Hudson Partners reserves the right to request the return of any or all of the information enclosed.

HUDSON COMMERCIAL PARTNERS, INC. - 54 - HUDSON COMMERCIAL PARTNERS, INC.

7901 BLVDW. S U N S E TPrice Undisclosed.

SITE DETAIL

Address: 7901 W. SUNSET BLVD., Los Angeles, CA 90046 County: Los Angeles

APN: 5551-018-020

Lot Size: ±20,735 SF

Typography: Flat

Current Use: ARCO Gas Station

Current Improvements: Phase I & II ESA’s were recently completed. Phase II

report states “there is no evidence of a release of hazardous materials to the

subject property from the current/former on-site gasoline service stations at

this time.”

Zoning: C4-1D*

FAR: 1:1 (3:1 Density Bonus)*

Height Limit: None*

Entitlement Status: Not Entitled

Council District: Council District 4, David Ryu

Neighborhood Council: Hollywood Hills West

Traffic Count: ±90,000

*subject to pending zone change


OWNER/USER PROPERTY DESCRIPTION

EXECUTIVE SUMMARY

Hudson Partners is pleased to present a high profile, mixed-use or hotel development site at the northwest corner of Sunset Boulevard and Fairfax Avenue in a highly-coveted Hollywood/West Hollywood submarket. The 7901 Sunset Boulevard development opportunity is situated on an approximately 21,000 square foot parcel. The subject site is strategically located on the hard corner of Sunset Boulevard and Fairfax Avenue and benefits from excellent visibility on one of Los Angeles’ most prominent thoroughfares, Sunset Boulevard, with traffic counts of more than 90,000 cars per day. The property’s zoning allows for a variety of development possibilities by-right. In particular, it may be developed for residential, retail, hotel, office or any combination of these product types. This prominent site is zoned C4-1D “General Commercial.” Developer has an opportunity to increase the FAR to 3:1 ratio with a variance. 7901 Sunset development site’s strategic location is adjoining some of Los Angeles’ most sought after submarkets of Hollywood and West Hollywood. Situated just East of Sunset and Crescent Heights Boulevards to the approved Frank Gehry’s 300,000 square foot project at 8150 Sunset Boulevards which has been hailed as the new gateway to the Sunset Strip. This section of the Sunset Strip has an affluent neighborhood, home to some of the most expensive residences, the chicest restaurants, hotels and shops in Los Angeles. This densely populated infill location is surrounded by exceptionally affluent residential communities including Beverly Hills, West Hollywood and Hollywood Hills. It boasts strong 3-mile demographics including a population of over 245,000 people and average household incomes of over $110,000.

PROPERTY HIGHLIGHTS

• Once in a lifetime opportunity to purchase a prominent development site on the world famous Sunset Boulevard located in the epicenter of Hollywood and West Hollywood city border.

• Potential for a variety of multifamily and retail uses.

• The trophy site is situated on one of the most rarely traded stretches of Sunset Boulevard and some of Los Angeles most notable hotels are within walking distance such as Chateau Marmont, Andaz West Hollywood, Chamberlain West Hollywood Hotel, Mondrian, Grafton, The London and the Standard.

• Sunset Boulevard features some of the most fashionable names in retail and is also home to trendy restaurants and cafes. Just minutes to the west of 7901 Sunset is the chic ‘Sunset Plaza’ featuring Armani Exchange, Catherine Malandrino, H. Lorenzo, BCBG, Calypso, Dolce & Gabbana, La Clafoutis, Il Sole, Cafe Med and many more.

• Population: 3 mile radius – 249,864 people , Average Household Income: $114,832 and Traffic Counts: Sunset Blvd & Crescent Heights Blvd - 90,063

• A Developer has an opportunity to increase the current FAR to 3:1 ratio and creating additional project density similar to the 7950 Sunset Boulevard mixed use project.

• Phase I & II ESA’s were recently completed. Phase II report states “there is no evidence of a release of hazardous materials to the subject property from the

current/former on-site gasoline service stations at this time.”


SECTION 2 | PRO

PERTY INFO

RMATIO

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THE SUNSET PLAZA


PLAT MAP AERIAL OVERVIEW


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Not to Scale NLos Angeles City Planning Department • Graphic Services Section • December 2008

Hollywood Community PlanPROPOSED GENERALIZED LAND USE

Map 1

Legend: Single Family Residential Multiple Family Residential High Medium & High Density Residential Commercial Industrial Open Space Public Facilities Metro Rail Portal

This is an informational map provided for reference purposes only. It is not adopted as a part of the Hollywood Community Plan.

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Legend:

Hollywood Signage District Supplemental Use District (SUD)

Historic Preservation Overlay Zones (HPOZ)

Specific Plan Areas

Vermont-Western Station Neighborhood Area Plan (Transit Oriented District)

Metro Rail Portal


Hollywood Community PlanOVERLAY ZONES, SPECIFIC PLANS & SUPPLEMENTAL USE DISTRICTS

Map 5

HollywoodlandSpecific Plan

Mulholland Scenic ParkwaySpecific Plan

(Outer Corridor)

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Whitley HeightsHPOZ

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This is an informational map provided for reference purposes only. It is not adopted as a part of the Hollywood Community Plan. D

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HUDSON COMMERCIAL PARTNERS, INC. - 1716 - HUDSON COMMERCIAL PARTNERS, INC.Los Angeles City Planning Department • Graphic Services Section • October 2009

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Hollywood Community PlanMAJOR CULTURAL FACILITIES

Map 8

Egyptian Theater

El Capitan Theater

Grauman’s Chinese Theater

Pantages Theater

Hollywood Bowl

Ford Amphitheater

Greek Theater

Montalban Theater

Cinerema Dome

Griffith Observatory

Kodak Theater

Magic Castle

Amoeba Records

Guitar Center Rock Walk

Hollywood Palladium

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Hollywood Community PlanMAJOR PUBLIC TRANSIT CORRIDORS

Map 11


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HUDSON COMMERCIAL PARTNERS, INC. - 21

TWO BLOCKS WEST OF SUBJECT PROPERTY

7950 W. Sunset Boulevard

7950 W. Sunset Boulevard is a 183 unit

mixed-use luxury apartment community built

on a 1.63 acre parcel in Los Angeles, Cali-

fornia. The development consist of 5-story

wood frame construction over approxi-

mately 13,000 square feet of ground floor

restaurant / retail over 4 levels of subter-

ranean parking. The unit mix contains: 28

studios (15%) / 81 one bed flats (44%) / 68

two bed flats (37%) / 6 two bed townhous-

es (4%). Located on the Southwest corner

of Sunset at Hayworth, between Crescent

Heights and Fairfax. Across from the Direc-

tors Guild

TWO BLOCKS WEST OF SUBJECT PROPERTY


SECTION 4 | M

ARKET O

VERVIEW

SUNSET BLV

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Hollywood is generally considered to be the area bounded by Western Avenue on the east, fairfax Avenue on the west, the Hollywood freeway on the north and melrose Avenue on the south.

Hollywood is strategically located close to the geographic center of the greater Los Angeles area, and is surrounded by the communities of Burbank, North Hollywood and Studio city to the north, Beverly Hills and West Hollywood to the west, Hancock Park and mid-Wilshire to the south, Los feliz and Silver Lake to the east and downtown Los Angeles to the southeast. This location provides excellent

access to and from both the San fernando and San gabriel Valleys, as well as to Downtown and West Los Angeles. Hollywood has outstanding freeway access with eight freeway on/off-ramps from the Hollywood 101 freeway. Proximity to Downtown Los Angeles is 7 miles, to Los Angeles International Airport is 12 miles, and to the Bob Hope, Burbank/glendale/Pasadena Airport is approximately 6 miles.

location

VINE STREET

11market Overview135 0 n . w e s t e r n av e n u e

LOCATION


As it has been since the early 20th century, Hollywood continues to be the entertainment capital of the world. In addition to its multi-tenant office base, Hollywood has a strong core composed of a major motion picture studio, independent studios, television stations, radio stations, film laboratories, record companies, recording studios, post-production facilities, special effects and multi-media companies. These firms serve as the backbone of the Hollywood commercial real estate market. Because of the technical nature of their businesses, many of these firms have made long term commitments to the area, and have made substantial investments in their equipment and facilities.

Because the entertainment industry is spread throughout the Los Angeles region and has significant hubs in Santa monica, century city, culver city, West Hollywood, Hollywood and Burbank, Hollywood provides these firms with a strategic central location to serve other industry firms in the surrounding areas. Due to the proximity to the major studios in Burbank (ABc/Disney, Dreamworks and Warner Bros), Universal city (NBc/Universal), century city (fox) and culver city (Sony), Hollywood, home to Paramount, is the perfect central location for firms that conduct business with these major studios and draw their employees from throughout the Los Angeles area.

overview


OVERVIEW

FRANK GEHRY’S PROJECT AT 8150 SUNSET BLVD.


The primary driver of the Hollywood submarket is the presence of entertainment, media and technology companies that occupy studio and office space and serve as a magnet for the ancillary entertainment industry service providers. Hollywood contains one of the largest concentration of entertainment industry and media firms in the world, a sampling of these recognizable entertainment industry leaders include:

market drivers

ENTERTAINmENT LEADERS

Academy of motion Picture Arts & Sciences AOL Ascent media group capitol Records cNN Deluxe

Eastman Kodak company Encore Video j2 global communications Jim Henson StudiosKTLA Television Live Nation magical Elves

NickelodeonPanasonicPanavisionReveille Productions/ShineSamsungSmugglerTechnicolor

Time-Warner cableTrailer ParkTV guideVNU/Nielson

HOLLYWOOD STUDIO LOTS

cBS Television centerHollywood center Studios Paramount Studios Raleigh Studios Red Studios

Sunset-Bronson Studios Sunset-gower StudiosThe Lot

ANcILLARY SERVIcE PROVIDERS

BLT Assoc.Laser-Pacific mediaPaladin Lighting

Paskal LightingSoundeluxTodd-AO

EDUcATION

AADAAfIAmDA Emerson college IcDc collegeLe cordon Bleu

Los Angeles city collegemusicians InstituteSAE InstituteThe LA film School The LA Recording Studio

14 market Overview 135 0 N . W e s t e r N av e N u e

MARKETDRIVERS


HOLLYWOOD 959 (959 SEWARD ST)

JH Snyder is preparing to break ground with their 245,000 Sf creative office building on spec. The fully entitled two building campus, located around the corner from the Hollywood media Production campus, is seeking LEED certification and is targeting entertainment and media companies.

5800 W SUNSET BOULEVARD

The former Warner Bros’ headquarters during the 1920’s, Hudson Pacific is seeking entitlements for a 405,000 Sf office development located at the Sunset Bronson Studios/KTLA site. The proposed development will consist of a 315,000 13-story tower with an adjacent 90,000 Sf 5-story production building. gensler is designing both properties for LEED certification. Delivery is anticipated for 2015.

cOLUmBIA SQUARE

Kilroy Realty recently purchased the former cBS/columbia Square facility and is planning a renovation of the existing structure and a new mixed-use development on the site. Plans call for renovation of 50,000 Sf of existing office space into creative office space and 320,000 Sf of new creative office space, to be built in phases, spread across primarily low/mid-rise buildings. The fully entitled site will also include new retail and residential components.

There are several other office developments that are at various stages of planning, but given

the current market conditions and Hollywood’s current momentum, it is likely several of these projects will continue moving forward.

• Exceptional Regional flexibility and Access

• central to Entertainment Industry

• central to Los Angeles Housing

• metro-Rail / Public Transportation

• World class Retail, Entertainment and Lodging

• Improving and Expanding Housing Stock


mILLENNIUm HOLLYWOOD

Developers are seeking entitlements to build a landmark project of up to 1.2 mSf of residential, retail, hotel, sports club restaurant and office space. millennium Hollywood would include two 40+ story high-rise towers and be designed to provide public space for the community. Encompasses 4.5 Ac including the capitol Records Tower. Approval estimated to take at least 18 months.

SUNSET & gORDON

construction is underway on the mixed-use project located on the old Spaghetti factory site. When complete, the project will deliver 300 residential units, 12,000 Sf of retail space and 40,000 Sf of creative office space.

BLVD 6200

construction has begun on Phase I of a $500m mixed-use project across from the Pantages Theatre. Phase I will consist of 535 residential units and 75,000 Sf of retail space. Phase II, located immediately across Hollywood Blvd, will consist of 507 residential units and 95,000 Sf of retail space.

EmERSON cOLLEgE

Boston-based Emerson college has broken ground on a permanent campus for its 22-year old LA program, now located in Burbank. The 10-story building, adjacent to Sunset gower Studios, will include student housing, classrooms, offices and ground level retail totaling 115,000 Sf.

18 market Overview 135 0 N . W e s t e r N av e N u e


Hollywood is in the midst of a major revitalization, which includes over $3 billion in public and private developments highlighted by world-class entertainment and tourist venues, the extension of the transportation infrastructure, a large concentration of new residential developments, and the redevelopment of numerous trendy restaurants, hotels, bars and clubs that is transforming the area into a vibrant “live, work, play” environment. Hollywood has received increased media attention and positive coverage in recent months, emphasizing that the renaissance of Hollywood is happening and it’s happening now!

Hollywood is home to the largest concentration of film, television, and post-production facilities in the world making it the beating heart of the entertainment industry. Hollywood is located in the heart of Los Angeles county, a worldwide international tourist destination with over 19 million people visiting annually, accounting for direct expenditures of over $1.3 billion.

The redevelopment of Hollywood has been largely driven by three economic development agencies:

• Hollywood chamber of commerce

• Hollywood Entertainment District

• community Redevelopment Agency of Los Angeles

HOLLYWOOD cHAmBER Of cOmmERcE

The Hollywood chamber of commerce consists of owners, managers, presidents and other key representatives from a spectrum of businesses and organizations around the Hollywood community. Its two most noticeable contributions to the Hollywood landscape are The Hollywood Sign and The Hollywood Walk of fame. To this day, the Hollywood chamber of commerce successfully continues its mission to promote and enhance the business, cultural and civic well-being of Hollywood.

the hollywood renaissance story

21135 0 n . w e s t e r n av e n u e Area Description

THE HOLLYWOODRENAISSANCE STORY


HOLLYWOOD ENTERTAINmENT DISTRIcT

The Hollywood Entertainment District (HED) is a property-based business improvement district (BID) comprised of 210 property owners who, since 1996, have assessed themselves millions in property taxes to pay for security, maintenance services and marketing activities to promote the revitalization of the area. In 2010 alone, the HED generated over $3.4 million to be reinvested in these community projects. The HED was established in two phases, the first phase stretched along Hollywood Blvd from La Brea on the west to mccadden on the east. following in the success of the HED-Phase I, a group of property owners

worked to create a second BID that spanned Hollywood Blvd from mccadden on the west to gower on the east. The results indicate that the BID has had a considerable positive impact on the neighborhood’s economic growth as the BID has been a contributing factor in the Hollywood area’s annual tax revenue contribution outpacing the greater Los Angeles area. The increased tax revenue directly correlates with increased business activity to businesses within the BID. Since 1998, the BID has increased transient occupancy tax revenues 271%, parking tax revenues have increased 148%, sales tax revenues have increased 375% and utility use tax revenue has increased 198%.

cOmmUNITY DEVELOPmENT AgENcY

While shuttered by state legislation in 2011, The community Redevelopment Agency (cRA) has played a vital role and had a lasting impact on Hollywood’s Renaissance. The cRA was responsible for a 1,107-acre Hollywood Redevelopment Project at the foot of the Hollywood Hills. The plan was adopted by the Los Angeles city council in may 1986 with the goals of encouraging economic development, promoting and retaining the entertainment industry, revitalizing the historic core of Hollywood, preserving and expanding housing for all income groups, meeting social needs of area residents, providing urban design

guidelines, and preserving historically significant structures. The results of the project have supported new commercial investments such as Hollywood & Highland and also improved Highland and Vine Streets.

The impact of these three economic development agencies is best illustrated by the significant retail, residential, entertainment and mixed-use development activity in the past several years.

22 135 0 N . W e s t e r N av e N u eArea Description

HOLLYWOOD ENTERTAINmENT DISTRIcT

The Hollywood Entertainment District (HED) is a property-based business improvement district (BID) comprised of 210 property owners who, since 1996, have assessed themselves millions in property taxes to pay for security, maintenance services and marketing activities to promote the revitalization of the area. In 2010 alone, the HED generated over $3.4 million to be reinvested in these community projects. The HED was established in two phases, the first phase stretched along Hollywood Blvd from La Brea on the west to mccadden on the east. following in the success of the HED-Phase I, a group of property owners

worked to create a second BID that spanned Hollywood Blvd from mccadden on the west to gower on the east. The results indicate that the BID has had a considerable positive impact on the neighborhood’s economic growth as the BID has been a contributing factor in the Hollywood area’s annual tax revenue contribution outpacing the greater Los Angeles area. The increased tax revenue directly correlates with increased business activity to businesses within the BID. Since 1998, the BID has increased transient occupancy tax revenues 271%, parking tax revenues have increased 148%, sales tax revenues have increased 375% and utility use tax revenue has increased 198%.

cOmmUNITY DEVELOPmENT AgENcY

While shuttered by state legislation in 2011, The community Redevelopment Agency (cRA) has played a vital role and had a lasting impact on Hollywood’s Renaissance. The cRA was responsible for a 1,107-acre Hollywood Redevelopment Project at the foot of the Hollywood Hills. The plan was adopted by the Los Angeles city council in may 1986 with the goals of encouraging economic development, promoting and retaining the entertainment industry, revitalizing the historic core of Hollywood, preserving and expanding housing for all income groups, meeting social needs of area residents, providing urban design

guidelines, and preserving historically significant structures. The results of the project have supported new commercial investments such as Hollywood & Highland and also improved Highland and Vine Streets.

The impact of these three economic development agencies is best illustrated by the significant retail, residential, entertainment and mixed-use development activity in the past several years.



commercialdevelopmentOver $3 billion of forecast and planned new development in Hollywood is dramatically increasing the quantity and quality of amenities easily reached from the building. The most significant projects include:

cOmPLETED PROJEcTS & mAJOR AmENITIES IN HOLLYWOOD

1600 Vine Amoeba music Bank of Hollywood Tower Belmont Village children’s Hospital Expansion cinerama Dome/ArcLight cosmo Lofts Dolby Theater Doolittle Theater East cahuenga Alley Egyptian Theater El capitan Office - Rehab

El capitan Theater Hollywood & Highland centerHollywood galaxy Hollywood metro Apartments Hollywood museum Hollywood Palladium Hollywood Passage Hudson Apartments Ivar Theater Kaiser Permanente Expansion LaBelle at Hollywood TowerLoew’s Hollywood Renaissance Hotel

madame Tussauds musiccares Encore HallOriginal farmer’s marketPalomar ApartmentsPanavision HollywoodPantages TheaterPetersen BuildingPickford center for motion Picture StudyRedbury HotelRenaissance Hotel Rubix Apartments

Sunset + VineSunset Vine TowerTechnicolor BuildingThe Avenue ApartmentsThe Broadway LoftsThe grove at farmer’s marketThe metropolitanThompson’s Roosevelt HotelTribune StudiosTV guide BuildingW HotelWestern carlton Apartments

PROJEcTS APPROVED/UNDER cONSTRUcTION

5555 Hollywood mixed-Use 6255 Sunset Blvd Renovation 959 Seward StreetBlvd6200

camden mixed-Use columbia SquareEmerson college formosa South Office (The Lot)

La Brea gatewayLoew’s Hollywood RenovationParking garage 702Paseo Plaza

Sunset & gordon mixed-UseSunset & Western -Target

PROPOSED PROJEcTS

5800 Sunset Blvd Office TowerAcademy of motion Pictures Arts and Sciences museum Ametron Building champion

cherokee Apartments champion Highland mixed-UseDream HotelHollywood gower mixed-Use

Hollywood Presbyterian Hospital Expansionmillennium Hollywood/capitol Records Project

Paramount Pictures ProjectSecurity Bank Building Reposition


COMMERCIALDEVELOPMENT


entertainment, media & technology overviewAccording to industry research firm Veronis Suhler Stevenson, total US communications and media spending in 2010 was nearly $1.1 trillion and is projected to grow to $1.4 trillion by 2014. With 2010 revenue in excess of $443 billion, the United States is home to the largest entertainment and media market in the world. The entertainment industry includes a large number of sub-industries that control the distribution and production of mass media content including:

ENTERTAINmENT mEDIA & TEcHNOLOgY

filmTelevisionRadio music Animation

computer & Video gamesTelecommunicationsmovie StudiosInternetPrint mediaPublic Relations

The industry continues to experience strong economic growth that has outpaced the growth of the US gross Domestic Product (gDP) for the past five years. PriceWaterhouse coopers expects that the industry will expand at a

EXEcUTIVE REcEPTION


ENATERTANMENT& TECHNOLOGYOVERVIEW


compound annual growth rate of 4.6% to reach $555 trillion in sales by 2015. With the rapid growth of the Internet, satellite communications, and digital networks, demand for entertainment and media content is increasing as more global markets come online. As incomes and literacy levels rise in developing countries, global demand for content will continue to increase. The majority of this content is created in Los Angeles, which is the leading global content producer for nearly all aspects of the entertainment and media industry.

Los Angeles traces its roots as the leader of the entertainment industry to the dawn of motion picture film making in the early 1920s and now serves as the global center of the filmed entertainment industry. Los Angeles is also the largest radio and television broadcast market in the country with an extraordinary concentration of film, television, radio, and music industry leaders in the region. This concentration is primarily located in Hollywood, Burbank and the greater Westside area of Los Angeles and has

created incomparable synergy and economies of scale for content creators in the region.

Today, Los Angeles is known as the media capital of the world, and entertainment may be the most important industry in Los Angeles. It has been the fastest growing segment of the Los Angeles economy with employment growth of over 75% since 1992. furthermore, the filmed entertainment industry is the largest single contributor to the Los Angeles county economy, employing approximately 10.5% of its workforce and generating over $27 billion in direct local expenditures. Los Angeles county accounts for approximately 75% of the entertainment industry employment nationwide. most films and television shows are produced in Los Angeles, and the majority of those that are not nevertheless are created, controlled, and administered in Los Angeles. motion picture and television production alone employ the third largest amount of workers in Los Angeles county, ahead of industry stalwarts such as

financial services, health services/bio-medicine, wholesale trade/logistics, and higher education.

The entertainment industry is comprised of five primary components that are amalgamating technology and media content delivery: film, television, radio, music, and animation/gaming. With continuously improving methods of distribution, these industries are in constant demand for new content which is largely being provided out of Los Angeles.


©2011 CB Richard Ellis, Inc. The information above has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness.

West Hollywood,California

8801 Sunset Boulevard

©2011 CB Richard Ellis, Inc. The information above has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness.

Jay Luchs | Executive Vice President | Lic. 01260345 | 310.550.26.03 | [email protected] | CB Richard Ellis |1840 Century Park East | Suite 700 | Los Angeles, CA 90067| www.cbre.com

8801 SUNSET BLVD / FORMER ICONIC TOWER RECORDS FLAGSHIP RETAIL SITE


cOmmISSARY

RADIO AND TELEVISION BROADcASTINg

Seventy-eight radio stations broadcast in the Los Angeles area making it the largest radio broadcast market in the country. clear channel, Infinity Broadcasting, Disney/ABc, and Emmis Broadcasting operate multiple radio stations in the market, and Los Angeles has more Spanish-language radio stations than any other city in the country. Advertising revenue has grown as consolidation has continued in the industry, and since the federal communications commission has distributed most of the radio spectrum throughout the nation, barriers to entry are high which has been demonstrated by the massive capital investment required by Sirius Satellite Radio and Xm. As commute times grow, radio broadcasting will only grow in popularity as the primary distribution channel for out-of-home media and advertising.


mUSIc

Every major record label has a significant presence in Los Angeles county. The headquarters of Warner music group, Universal/EmI/capitol Records, and Dreamworks are in Los Angeles county, and Sony Bmg, and Interscope have significant West coast operations in Los Angeles. Apple has opened an office in Santa monica, and Yahoo’s music group and google are also located in Santa monica. As music, video, mobile telephony, and the Internet converge, these companies will continue to play a major role in the distribution of music content.

ANImATION

Los Angeles is home to many of the largest special effects and animation production facilities in the world. Due to its gaining popularity and the fact that it is less expensive to produce than live-action

production, animation will continue to grow quickly as an important segment of the film and television industries. The talent supplied by colleges and art schools such as california Institute of Arts, Art center college of Design, and Otis college of Art and Design will help to ensure that Los Angeles remains a hotbed of animation, computer generated imagery (cgI) and other special effects.

cOmPUTER & VIDEO gAmES

While once considered a niche market and a passing fad, U.S. computer and video game software sales grew to $25.1 billion in 2010 according to the Entertainment Software Association. As it grows, the gaming industry is consolidating and integrating vertically to control increasing costs. Smaller game developers, the traditional source of innovation in the industry, are being absorbed by large publishers like Nintendo,

Sony, Activision, Electronic Arts, Riot games and Wild Tangent.

Early on, development costs were minimal, and video games could be quite profitable. As a result, publishers shared larger royalties on games sold. As technology improved, barriers to entry increased and publishers needed larger development teams and longer development cycles to create games that took full advantage of improved graphics and computing power. Today, budgets continue to grow despite the fact that most publishers use middleware and pre-built game engines to cut the development cycle which typically ranges from one to three years.

Similar to the music industry, the climate of consolidation has given birth to legions of indie game developers trying to reach audiences through the Internet rather than traditional retail channels. However, unlike the

music industry, where modern technology has allowed independent musicians to create professional content inexpensively, modern games require increasing amounts of manpower and equipment.

The video game industry continues to grow at an aggressive pace, and Los Angeles is well-positioned to benefit from the growth as the video game and entertainment industries converge. Vivendi Universal games already has a significant presence at Howard Hughes center in Los Angeles, Activision’s headquarters is in Santa monica, and Electronic Arts occupies a large amount of space in Playa Vista. Among others, Disney Interactive Studios, Warner Brothers Interactive, and Konami also operate in Los Angeles county.



Tivo, Apple, Amazon.com, movielink and others have emerged as new distribution channels for digital programming, and older distributors such as Blockbuster and Netflix are quickly trying to revolutionize their business models to compete with new competitors like AT&T, Verizon, Hulu, and google’s YouTube. New distribution channels will lead to increased demand for programming, and as demand increases globally, the entertainment and media industry will become more important to the economy.

While a wide variety of emerging trends pose opportunities as well as threats to the industry, one theme is consistent: new sources of revenue are being developed that ease studios’ reliance on box-office revenues for profitability. The diversification will impart greater stability, increased profitability, and the wider influence of entertainment and media companies.

futuregrowth


SUNSET / LA CIENEGA PROJECT

FUTUREGROWTH

KELLY BETPOLICEManaging Principal

11846 Ventura Blvd.Suite 140Studio City, CA 91604

Cal BRE: 01470894

PETER STEIGLEDERManaging Principal

11846 Ventura Blvd.Suite 140Studio City, CA 91604

Cal BRE: 01299383

CONTACT

C: 310.403.8544P: 818.699.1602F: 818.332.4977

E: [email protected]

www.hudsonpartnersinc.com

CONTACT

C: 818.422.8879P: 818.293.1004F: 818.332.4977

E: [email protected]

www.hudsonpartnersinc.com

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7901 W SUNSET BLVD., LOS ANGELES, CA 90046• A Developer has an opportunity to increase the current FAR to 3:1 ratio and creating additional project density similar to the 7950 Sunset