Statistics persuaded investor to develop housing.

For nearly half a century, no developer wanted to build a large residential project in Hollywood.

Enter Larry Bond, who three years ago, in partnership with Canyon Johnson Realty Advisors, broke ground on a 625,000-square-foot mixed-use project at the intersection of Sunset Boulevard and Vine Street. The 300-unit apartment development has proven a success in its own right--it sold recently for $165 million--and spurred others to take on large residential developments in the neighborhood.

"Three or four years ago it was very difficult to find any institutional developer, partner, investor, or lender to come into Hollywood," he said. "Crime was significant. Crime is now down over 50 percent in our area since we started. People walk the streets and people in the community are not afraid to go out at night."

Bond Cos. was initially an investor in developer Regent Properties' original plans to make Sunset + Vine a three-story retail center. That idea was scotched when its anchor tenant, Mann Theaters, filed for Chapter 11 bankruptcy protection.

Bond took over in 2001 and shifted to the mixed-use plan. The biggest challenge to getting Sunset + Vine off the ground was the absence of existing projects in the area to show lenders.

Things changed for the better once Bond Cos. got the financial backing of the Canyon-Johnson Urban Fund, a partnership of Canyon Capital Realty Advisors and Magic Johnson's Johnson Development Corp., which focuses on urban real estate.

"The urban decay had dissuaded others, but they believed there was pent up demand for our style of development," said Bond. "Once they shared our vision it was easier to get construction lenders."

Other developers had looked at creating housing in Hollywood, he said, but were ultimately "too nervous and stood on the sidelines."

Bond said that after studying the demographics and employment statistics in the area, "it became clear that within three miles you had 110,000 people working every day. You have 170,000 cars passing by the corner of Sunset and Vine each day. These were all incredible statistics."

Last month, Bond Cos. and Canyon Johnson sold the complex to SSR Realty Advisors, Inc., a pension advisor for Calpers, for $165 million.

But Bond is far from finished with Hollywood. His firm is in the process of acquiring two parcels on Cole Place, south of Sunset, that will become a complex of 50 one- and two-bedroom condominiums. Bond said his firm already owns property at the corner of Garfield Place and Hollywood Boulevard, which will be developed into either apartments or condominiums and may become mixed-use.

Bond's started his path to Hollywood as an analyst at a real estate development firm. After a few years there he launched his business, initially helping other developers secure construction financing and equity partners. In 1994, he began focusing on his own projects.

The company started with the acquisition of grocery stores in the Midwest and later began developing apartment complexes in Las Vegas and San Francisco before tackling Hollywood.

With his new projects, Bond expects no trouble with the shift from renters to buyers. Projects like Cole Place are integral to Bond's "hub and spoke" approach of development, creating a major project like Sunset + Vine and then focusing on several smaller properties surrounding it in order to improve the entire community, he said.

"The affordability gap is widening and we're trying to help people who are stakeholders in the community, but haven't had the opportunity to physically purchase something," said Bond.

Residential Developer

Larry Bond

Born: Kincheloe Air Force Base, Mich., 1962

Position: Co-founder and Chairman, Bond Cos.

Accomplishments: Developed Sunset + Vine, a 625,000-square-foot mixed-use project, and the first major housing development in Hollywood to be built in half a century.

Quote: "It's time for our city to grow up. We need to go vertical and put housing where the jobs are. It's really the only solution that can stop urban sprawl and not just keep taxing the public."