The fast-moving makeover of the Hollywood district may soon include a new development on the site of the Hollywood Palladium, the famous concert hall that has hosted such top musical acts as Glenn Miller and the Grateful Dead.
Whether the building itself can survive the transition is unclear.
Combined Properties Inc. is buying the 66-year-old Sunset Boulevard venue with the intention of developing its large parking lot -- possibly with residences, stores and a hotel, said Marianne Lowenthal, executive vice president of the Beverly Hills firm.
She declined to say how much the company is paying for the property, but local real estate observers value the deal at about $65 million.
The Palladium has been a shining piece of Hollywood history. It was built by former film producer Maurice M. Cohen on the site of the original Paramount Studio. His ambition was to create a music mecca where ordinary Angelenos could see top celebrities.
After opening night on Halloween 1940, The Times wrote: "The million-dollar ballroom-cafe, which can accommodate comfortably 7,500 persons, was literally packed to the rafters when band leader Tommy Dorsey blew the first blast from his trombone and his orchestra let loose with some jive and swing music."
Dorsey's singers included a skinny young man from New Jersey named Frank Sinatra.
Preservationists have been worried that Hollywood's real estate boom might lead to the razing of the Palladium to make way for shops, restaurants and condominiums, which are enjoying popularity among buyers attracted to the district's surging nightlife and urban vibe.
"We are going to try our hardest to save the Palladium and restore it," Lowenthal said.
Such a project, however, would be "very expensive," she acknowledged. "We are analyzing it right now and working to come up with plans everyone would be excited about."
Combined Properties has the Palladium in escrow and expects to take title by summer's end.
The company has specialized in building neighborhood shopping centers including Foothill Town Center in Foothill Ranch and is moving toward the type of mixed-use developments gaining popularity in urban areas. It has three such projects planned in West Hollywood.
If Combined Properties can keep the Palladium in place, it would have an easier time of getting a development surrounding it approved, said Leron Gubler, president of the Hollywood Chamber of Commerce.
