Hollywood residential development market still sizzling.

HOLLYWOOD continues to attract housing developers willing to pay princely sums to build projects in the community.

John Laing Homes has agreed to pay in the neighborhood of $16 million for a nearly two-acre site that consists of mostly surface parking and also includes the Open Fist Theatre at 1625 La Brea Ave., according to sources.

An unsuccessful bidder on the property said John Laing Homes agreed to pay close to the $200-a-foot asking price, which is nearly double the going rate for undeveloped Hollywood parcels.

Philip Simmons, president of John Laing Urban Division, confirmed the transaction but not the price. He said the company has initial plans for a 180-unit condominium project above about 14,000 square feet of shops and restaurants. The project will also include a 450-space underground garage.

The deal hasn't closed yet, but both sides have entered into a binding contract.

"We're making a strong push into L.A. with urban infill housing," Simmons said. "We feel that's where the market is heading."

Steve Ullman, principal of seller Grant Parking Inc., directed inquiries to John Laing Homes.

The homebuilder may also be among a number of bidders on a new Hollywood listing.

The Bolour Trust has listed the Security Pacific building, a 75,000-square foot office property at 6381 Hollywood Blvd., at the northeast corner of Cahuenga Boulevard.

Along with the office building are two adjacent parcels at 1716 and 1720 Cahuenga Blvd. One parcel contains a retail building with a Sharkey's restaurant and the nightclub Dublin's as tenants. Next door to the restaurants is a surface parking lot.

Mehdi and Michel Bolour are asking $17 million for the portfolio, which was listed at the beginning of the month with Ed Rosenthal, a vice president with CB Richard Ellis Inc. The Bolours bought the 70-year-old office building for $5.2 million in 1987 and the two adjacent retail properties 12 years ago for $825,000.

Rosenthal said the 97 percent occupied office building is bundled with the retail properties so the portfolio can be sold as a potential residential conversion project.

To make the deal work, prospective buyers would have to convince the restaurants to move into the ground floor of the office building (space that becomes available in six months), and the retail building would have to be either razed or incorporated into a new parking garage. The parking would be required for residential tenants.

Without confirming John Laing Urban's interest, Simmons said the unit was looking at several opportunities in the market.

"We are looking at several conversion and adaptive reuse opportunities," Simmons said. "But our primary focus remains on new ground-up development."

Already, Rosenthal said he has received an "attractive offer" from a "national homebuilder," and he said another developer with several commercial-to-residential conversions is expected to place bids within the next week.

Both CIM Group Inc. and Kor Group Inc. are converting former Hollywood office buildings into condominiums. Calls to both companies were not returned.

Staff reporter Andy Fixmer can be reached by phone at [phone], ext. 263, or by email at [e-mail].