Area showing signs of promise as trendy boutiques take hold.

A trip to the eastern end of Melrose Avenue proves the old saw about how a rising tide lifts all boats.

Just east of Vine Street, the Hancock Park Plaza shopping mall has been transformed from a hangout for derelicts to an upscale spot where employees of nearby Paramount Pictures can shop for low-carb foods or work out at a gym.

Next door, a two-story brick building that once sported a caved-in roof is now home to the kind of funky boutiques and apartments that would be found on the more fashionable western end of Melrose.

But central Hollywood's reemergence as an entertainment

mecca, along with proximity to Larchmont Village and the Melrose Hill residential neighborhood--deemed a "hidden gem" by Los Angeles magazine last year--have made East Melrose an attractive possibility for retailers.

"This area used to be a dump. Some parts still are. But our location is attracting new blood," said Lina Dana, who along with her daughter purchased the brick fixer-upper at 5754 Melrose four years ago.

With its collection of liquor stores, lowly post-production offices and the occasional stray dog, East Melrose retains much of its gritty flavor. But trendy clothes shops, furniture stores and restaurants are now dotting the landscape.

There are denim-clad hipsters at the corner of Melrose and Van Ness Avenue, shopping at Charizmatik (a retail outpost of the vintage clothing brand), waiting for a table at the Fabiolus Cafe next door or driving down to the Cactus Cafe at Melrose and Rossmore Avenue for lattes.

At the site of the recently shuttered House restaurant at Melrose and Arden Boulevard, several coffee chains and restaurant owners are competing for the spot.

There are also entrepreneurs looking to take advantage of low interest rates and buy their own buildings instead of leasing. Five buildings have come up for sale in the past year, including 5719 Melrose Ave., an abandoned storefront facing Larchmont Boulevard.

"It's the spillover effect for sure. A lot of people think this area has possibilities," said Cushman & Wakefield's Andrew Feola, who has listed an office building for lease at Melrose and Arden.

Studios, drugs, nightclubs

Studio lots gave East Melrose some glitz in the early 20th century. The area, named for a rancher whose farm bordered the street, was little more than a tree-lined road through orange groves and sheep meadows. Then, attracted by the open space, a string of studio lots opened-including Famous Players in 1915 and successor company Paramount Pictures' sprawling complex 11 years later.

But by the 1980s, the strip suffered along with the rest of Hollywood, as prostitution and drug dealing overtook the area. There were spotty revitalization efforts, such as Raleigh Enterprises' renovation of the Famous Players lot, but very little began happening until the late 1990s when a few club scene impresarios, including Ivan Kane, opened nightspots near Paramount. The trendy began setting up more permanent outposts in 2001 when Charizmatik opened its store.

The area is still a work in progress.

Larger developers have focused more of their attention further north on or near Hollywood Boulevard, attracted by the direct proximity to the Metro subway line. Meanwhile, most of the buildings in the area are just two stories; they are good for small businesses, but won't attract the kind of firms looking for bigger space.

But East Melrose still seems to hold promise for those--if they offer the right fit. Cushman & Wakefield's Feola got offers from a number of businesses, including a hair salon, after he recently listed an office building at 5735 Melrose Ave. Despite the pricey $1.75 per square-foot rent, its convenient on-site parking and its location made it a draw.

"One wouldn't realize it's a soft leasing market by the response I got," Feola said.