By Jack Witthaus CoStar News
April 19, 2023 | 4:33 P.M.
Massachi Industries, DM Development Develop Los Angeles Project
An apartment tower that would be one of the tallest in Hollywood, California, may break ground in 2024 if its developers can secure financing and permits.
Massachi Industries, based in Beverly Hills, and DM Development, based in San Francisco, hope to break ground on its 128-unit Bronson in the next 12 months, said Alex Massachi, who is chairman and CEO of Massachi Industries. The Los Angeles City Council formally adopted the project at 1725-1739 N. Bronson Ave. on April 14, allowing the development team to seek permits.
The proposed 23-story skyscraper is approved to rise 270 feet. By comparison, the well-known Capitol Records Building is 150 feet tall.
However, the development team now has to secure funding for the project. Massachi said it's difficult for developers to get loans as interest rates continue to rise and lenders have pulled back on financing some construction projects.
In addition, the development team needs to secure building permits, a process that could take months, Massachi said.
"It'll be an uphill battle to get us off the ground," Massachi said.
If built, Bronson would have 370 beds. Half of the building would have bedrooms with shared living spaces, which is known as suite living. The other half of the building would feature traditional one- and two-bedroom apartments.
Hollywood's apartment market has a roughly 5.3% vacancy rate, above the greater L.A. average of 4.4%, according to CoStar data. The market's average asking rent is $2,359 per month, above the greater L.A. average of $2,210.