Construction in West Hollywood rises as national retailers arrive.

West Hollywood is rapidly becoming a destination of choice for retailers. And that is igniting a lot of interest in new retail construction along a prime stretch of the choicest of all West Hollywood streets -- Sunset Boulevard 

between Doheny Drive and La Cienega Boulevard, part of West Hollywood's famed Sunset Strip.

The area -- best known for its night clubs, outdoor cafes and small boutiques - will soon see some new, national retailers hit the area. Barnes & Noble and The Limited are both expected to lease build-to-suits in West Hollywood near the upscale Sunset Plaza retail shops. Also, sources said a grocery store may soon be built along the famed strip, which would be the first such structure to open there.

According to real estate sources, the success of the upscale Sunset Plaza is a magnet drawing additional retailers and restaurants to the area. Sources also said the City of West Hollywood has adopted a pro-development stance, making that city more attractive for development than the City of Los Angeles.

"There is very little turnaround there," said Robert Schnur, a real estate broker with Century City-based Blatteis Realty Co., a brokerage firm specializing in retail properties. The area has demographics that rival other wealthy areas of Los Angeles County, such as Beverly Hills. Retail brokers pointed out that the wealth in the area makes it a natural competitor to Beverl Hills. But the feel of the West Hollywood neighborhood is different.

Beverly Hills attracts tourists for the most part, said Schnur, and that is reflected in the types of tenants looking for space there. Planet Hollywood, fo example, is hoping to open a restaurant there soon.

The upscale Sunset Plaza area of West Hollywood, on the other hand, is more "fashion forward" and geared toward a walking crowd looking to dine at one of Sunset Plaza's outdoor cafes before heading down to browse for books at Book Soup or CDs at Tower Records or before seeing a play at the Tiffany Theater or concert at House of Blues or Whiskey A Go Go.

The street scene, according to Matthew May, a broker with Beitler Commercial Realty Services, is what is attracting East Coast retailers who are accustomed to doing business in this type of atmosphere.

New York bookseller Barnes & Noble is the biggest of the East Coasters planning to move into space in West Hollywood. That company will also soon be opening a shop on the Third Street Promenade in Santa Monica.

In West Hollywood, Barnes & Noble is negotiating to lease a building which woul be constructed for it just east of Sunset Plaza -- on an empty lot next to West Hollywood landmark coffee shop Ben Frank's. The 25,000-to-27,000-square-foot store is expected to house a Starbucks Coffee outlet, in addition to the thousands of book titles.

Directly across Sunset Boulevard from Ben Frank's, another retailer -- Columbus Ohio-based The Limited -- is scouting the surface parking lot adjacent to the Playboy building as the possible site for one of its outlets.

New York City-based Kenneth Cole, an upscale shoe retailer, opened its first Lo Angeles location in September of 1993 just west of Sunset Plaza.

As for the possible grocery store project, sources close to the deal revealed that a grocery store company is negotiating to buy a vacant lot between Hilldal and Hammond avenues.

Across Sunset Boulevard from the vacant lot, construction is already underway o the former Gazzarri's night club site. According to West Hollywood City Manager Paul Brotzman, Santa Monica-based Billboard Entertainment is developing a restaurant and night club on that site, which is next door to The Roxy night club.

Not all the activity along the Sunset Strip, however, is coming from newcomers. Tower Records, a long-time resident of Sunset Boulevard, is planning to expand its shop. Tower recently purchased a motel, which it demolished to create more parking space for Tower patrons. Now, with additional parking, the music retailer is making plans to expand its store to encompass 30,000 square feet. According to Tony Pann, a representative for Tower, the company is now considering holding a design contest for the expansion.

Another established West Hollywood retailer, Book Soup, recently expanded its presence on the strip. The book seller expanded into a space next door, opening a restaurant called the Book Soup Bistro there.

Not only are East Coast and existing retailers expressing increased interest in West Hollywood. According to Schnur, trendy restaurant Authentic Cafe, now located on Beverly Boulevard, is searching for a spot to open a second restaurant. It very much wants to open that second outlet in the West Hollywood area around Sunset Plaza, Schnur said.

Part of the new vibrancy in West Hollywood has to do with the city's efforts to attract business to the area, said real estate sources. The Sunset Specific Plan, for example, has gone through major revisions in recent months. And that plan, once in place, will further help expedite development in the area, said commercial broker May. He also pointed out that business taxes are lower in Wes Hollywood than in Los Angeles and Beverly Hills.