Grove Envy

Hollywood and Highland isn't the only high-profile recent development failing to live up to expectations. The LA Business Journal this week points out (summary only; story not online) that the ArcLight Hollywood entertainment complex remains mostly empty -- two years after opening.

That's become a major headache for the enormous publicly-owned garage behind it, which hasn't come close to its original projected revenues. The problem? The complex only has two tenants: The ArcLight theaters and a 24 Hour Fitness location. Property owners are negotiating to bring in a nightclub, but the paper says that still won't cover the parking lot's costs.

The woes are very similar to what's going on at Hollywood and Highland, which was a dud from the moment it opened (and was recently acquired by CIM Realty). A sluggish tourism market, an initial way-to-high parking fee, a slower-than-expected Hollywood turnaround and a poor design have kept the center from living up to expectations.

Then there's the Grove. What a difference. Cheap parking, major retailers, the nearby Farmer's Market and a well-designed environment (even if it's wholly artificial) clearly worked.

Next up: the huge, boxy West Hollywood Gateway center opens this March. Tenants include Target, Best Buy, Baja Fresh and Ben & Jerry's.