One week after announcing a 20-year lease deal with Live Nation to manage and restore the Hollywood Palladium, the venue’s ownership group announced the sale of the Los Angeles landmark to Newport Capital Advisors for about $68 million.
John Tronson, a principal in the Hollywood office of Ramsey-Shilling Commercial Real Estate Services that represented Newport Capital, told the Los Angeles Business Journal the sale was contingent upon completion of the lease agreement.
"We couldn’t think of a better way to transfer ownership of the Palladium and keep it from turning into something that it shouldn’t be," Tronson told the paper. "It will be a re-creation of a historic gem with modern adaptation of it."
Live Nation plans to restore the classic art deco building and re-open it in fall 2008. The venue has a capacity of more than 4,000 and sits on about 60,000 square feet of land. Newport Capital reportedly is looking at development of the adjacent 100,000 square feet of property, with housing, office and hotel space in the mix.
The new owners don’t appear to be in a rush to launch the development and Tronson told the Business Journal that the Live Nation deal gives Newport Capital flexibility.
"They aren’t in a hell-bent hurry to build it," Tronson told the paper. "They want to take their time and do it right and do something the neighborhood and city feels good about."