The James? The 1? The Jeremy? Whatever. It Will Open Now in August

The Jeremy Hotel at 8490 Sunset Blvd.

It’s official. CIM Group announced today that it has sold the recently completed 286-room hotel at the Sunset La Cienega project. In a separate press release, Starwood Capital Group announced that it is the buyer, as has been long rumored.

Starwood now says the hotel, known as the James until an announcement in June that it would be called the 1 West Hollywood, will open on Aug. 11 as The Jeremy. Then at some point near the end of next year, it will change names again and be rebranded as the 1 West Hollywood.

Opening the hotel in August as The Jeremy likely will allow Starwood to begin generating revenue while it completes the rehabilitation of the new building to fit the standards of its “1” hotels, which it markets as an “eco-conscious luxury sustainable brand.” It also will improve the City of West Hollywood’s chance of getting some revenue from the hotel room occupancy tax paid by the hotel’s visitors.

The city had expected the hotel to be in business earlier, given that its opening originally was scheduled for March of this year, then moved to May. In June, real estate trade publications said it likely had been purchased by Starwood and would be branded as the “1”.

The sale moves closer to the finish line the longest-running development project in West Hollywood. “If you’d been holding your breath since we last reported movement on the Sunset Millennium project, well, you’d be dead by now,” said CurbedLA, the real estate news site, referring to the project by its earlier name in a story published in 2013.

Sunset La Cienega was the first major construction project approved after West Hollywood was incorporated as a city in 1984. In 1999, the City Council approved plans for the project, then called the Sunset Millennium. It called for construction on three parcels – one on the southeast corner of Sunset and La Cienega, one on the southwest corner of Sunset and La Cienega) and one on the southwest corner of Sunset and Alta Loma.

But because of problems securing financing, the original owner, Sunset Millennium Associates, sold the property to the CIM Group in 2011. CIM Group also owns the Lot movie studio on Formosa Avenue and the Hancock Lofts in WeHo’s Boystown.

The Sunset/Alta Loma part of the project was completed relatively quickly, with 100,000 square feet of retail space (including the Equinox gym) and a 10-story office building. It changed hands and was sold by  Palo Alto-based Broadreach Capital Partners late last year to Kilroy Realty Corp. That purchase, reported first by The Real Deal, a real estate trade website, totaled $210 million or $1,179 a square foot, making it one of the most expensive commercial real estate deals ever in West Hollywood. Tenants in that complex include Equinox gym, H&M apparel, Olive Peoples eyewear, SoulCyle exercise salon, Swarovski, Regus and Primo, the coffee bar.

The hotel, which sits on the southeast corner of Sunset and La Cienega, consists of two 10-story towers with 15,000 square feet of retail space. It has 286 hotel rooms, with nearly three dozen suites. According to Curbed LA, they include two penthouse lofts with private terraces, two bungalow suites with direct access to the pool, and nine suites with floor-to-ceiling windows that measure over 600 square feet.

The middle parcel has two eight-story towers with 190 residential units and 55,000 square feet of retail, including a new Fred Segal store. Both parcels have large public plazas with viewing terraces and contain large billboards. The residential buildings on that parcel recently were purchased from CIM by Korman Communities, which planned to use what was originally intended to be a condominium as short-term corporate rentals. Korman backed away from that plan shortly after it announced it and discovered that the City of West Hollywood has banned rentals of residential property for fewer than 31 days. Korman now has announced that it will rent out the 80 units in the east tower and that the 110 units in the west tower will be rented for stays of one month or more.

However, given the city’s separate ban on corporate rentals, that also might not be legal and will require the city to approve a change in the development agreement for the property. Another option for Korman would be to get the city to allow it to use those rooms as hotel rooms putting it in competition with The Jeremy.


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B. Zimmerman
Guest
B. Zimmerman

Here’s the real story that should be investigated. How does a hotelier who markets itself as eco-sensitive justify a major revamp of a just completed, arguably well-done property? Los Angeles’, and in particular West Hollywood’s, building codes are already among the most green in the country, so I’d bet this property is already fairly eco-friendly. I’m sure the developer could confirm that. So for Starwood to come in and create a bunch of construction waste under the pretense of developing an eco-friendly building is a marketing smokescreen. They should be called on it.

J Simmons
Guest
J Simmons

HUH? A brand new hotel (years of planning, construction, interiors ..) IS GOING TO RIP OUT INTERIOR FIXTURES/FINISHES … BEFORE A SINGLE PERSON HAS STAYED IN ANY OF THE BRAND NEW HOTEL ROOMS???

Hey – I have an old beat up kitchen. If they are “looking” to waste money ripping out and replacing … do it to my kitchen. At least the end result will be MUCH better than what was JUST BUILT &. DONE.

Oy Vey
Guest
Oy Vey

This shows how over heated the financial and capital markets have become, when one business plan gives way by selling out at a huge profit before a penny of revenue justifies that value, to a speculative new owner with their own financially engineered construct. CIM was smart to sell out at those values without ever having the headache of actually operating. This is one of those deals folks will look back at and say “ahh yeah, that’s when the market “jumped the shark.”

Todd Bianco
Guest

There has to be significant costs associated with the constant changes in “brand” for these two buildings. There hasn’t been one paying guest yet and the original build and interior design/decoration was to be “The James.” Then it became “1 West Hollywood” with some sort of bull sh-t “eco-sustainable” brand. Now the will use The James interiors as The Jeremy (WTF? Did they just pick any male name starting with J?) while they rip out all the new stuff to make it something else. Lots of money being thrown around and completely wasted interiors. Starwood must have big plans to… Read more »