REIT to Buy 97-Acre Tract Next to Hollywood Park in Inglewood

Continuing an acquisition and development blitz, real estate investment trust Casden Properties Inc., has agreed to purchase 97 acres adjacent to Hollywood Park in Inglewood from Pinnacle Entertainment Inc.

Beverly Hills-based Casden plans to build a residential community at the site. The privately held trust is developing more than 3,000 luxury housing units in Los Angeles, including the Villa Azure in West L.A. and another large development near Park La Brea in the Miracle Mile and Fairfax districts.

The $63-million Inglewood sale is expected to close in six to 12 months and, after taxes, could generate more than $41 million for Pinnacle, formerly known as Hollywood Park Inc. The deal would put an end to Pinnacle Entertainment’s thoroughbred horse-racing holdings in Los Angeles.

Up until Pinnacle Entertainment agreed to be acquired by the parent of Harveys Casino Resorts in a $675-million stock deal Monday, the company had been acquiring gaming facilities and shedding its horse-racing holdings.

The Hollywood Park racetrack was sold to Churchill Downs last year. And just a month ago, Pinnacle Entertainment sold 42 of its remaining acres in the Inglewood property to Home Depot and Target, said Norm Cravens, community relations consultant for Pinnacle.

“The property sold to Casden was surplus. It was basically unused parking,� Cravens said.

The sale is subject to a number of conditions, including the receipt by Casden of the necessary entitlements to develop the property.

A deal between Pinnacle Entertainment and home builder K. Hovnanian Cos. of California for the same 97 acres fell apart in February. The land had also been talked about for years as the possible site for a National Football League stadium.

Casden Properties has direct and indirect ownership of more than 70,000 housing units throughout the United States, according to Andrew Starrels, the company’s senior vice president and general counsel.

The company is in the midst of an aggressive property acquisition and development program that includes conventional as well as government-assisted multifamily housing, Starrels said.