The firm bought the upscale Redbury Hotel in a prime Los Angeles location, making it Vulcan’s only property outside Seattle.
Paul Allen’s Vulcan real estate firm has made its only foray outside the Seattle market, agreeing to buy a luxury hotel in Hollywood.
The Seattle-based firm, known for redeveloping much of South Lake Union, paid $40.9 million for the Redbury Hotel in Los Angeles in a deal announced Thursday.
It is the only current investment for Vulcan outside of Seattle, although the firm in 2010 did buy and subsequently sell an office building in Tempe, Ariz. Vulcan began began investing in 1998 and now manages nearly $2 billion in real estate, including the redevelopment of several blocks in the Yesler Terrace neighborhood.
The Redbury, a 57-suite hotel and restaurant at the famous Hollywood and Vine intersection, opened in 2010. Vulcan bought it from the hospitality company SBE, which will continue to manage the hotel.
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Lori Mason Curran, Vulcan’s real estate investment strategy director, said the company has no immediate plans for any changes to the property.
“The area is becoming more and more dynamic and that is why it appeals to us,” Mason Curran said.
It’s not clear whether Vulcan will continue acquiring properties in other cities.
“We evaluate many real estate investment opportunities and generally speaking we would not rule out further investments outside of Seattle,” Mason Curran said.