http://www.latimes.com/business/la-fi-mall23feb23,1,7183601.story?coll=la-headlines-business
Virgin to Add Store to Hollywood & Highland
The megastore between the Chinese and Kodak theaters will focus on L.A.'s music scene and include a stage.
By Roger Vincent, Times Staff Writer
Virgin Entertainment Group Inc. will open a new entertainment-oriented "megastore" in Hollywood this fall at Hollywood & Highland as part of a campaign by the owners of the massive retail complex to attract more shoppers.
The 22,000-square-foot store, which will be announced today, will sit between the landmark Grauman's Chinese Theatre and the Kodak Theatre, home of the Academy Awards. It will take space that is now occupied by a duty-free store in a 10-year, $7-million lease agreement with landlord CIM Group.
Virgin's new store will focus on the Los Angeles music scene and include a stage for live performances, said Simon Wright, the company's chief executive. Virgin will expand its customary inventory of music, films, books and games to include electronics, apparel and pop culture-related merchandise, he said.
There is a Virgin Megastore less than two miles away at Sunset and Crescent Heights boulevards. Virgin will continue to operate both stores at least until the lease expires in West Hollywood in three years, Wright said. "At that time we'll review" the options, he said.
Hollywood & Highland, which includes the Renaissance Hotel, was once valued at as much as $650 million. The retail and entertainment center, built in the spirit of the set of D.W. Griffith's "Intolerance," brought the Academy Awards back to Hollywood and helped spur investment in the area. But after cost overruns and delays drove up the price, it opened to mixed reviews shortly after the September 2001 terrorist attacks.
CIM Group, a Hollywood-based developer that specializes in large-scale urban projects, bought the property for $201 million last year from Trizec Properties Inc. and announced plans for a makeover.
After the awards show Sunday, work on $10 million of improvements will begin, said Shaul Kuba, a CIM principal. Changes include a new outdoor escalator connecting Hollywood Boulevard to the top of the four-level center. CIM also will replace several walls in the interior of the center with clear glass railings.
"We want to open it up visually," said Kuba. He expects the improvements to be completed by July.
Other recently signed tenants that the owners hope will appeal to Hollywood residents include Lucky Brand jeans, American Eagle Outfitters and BCBG Max Azria. The property is 97% leased, Kuba said.
[/url]
