Landmark projects get set to get off the ground.

THE transformation of Hollywood continued in the fourth quarter, as more office buildings were slated for conversion to residential uses and large, mixed-use projects consumed much of the remaining empty land.

Vacancies rose slightly from the prior quarter to 10.3 percent, but are still down from 12 percent a year earlier, according to Grubb & Ellis Co. Average rents for Class A office space remained stable at $2.54 per square foot.

At the same time, the steep jump in land prices in the past year--largely fueled by the boom in residential construction--has started to flatten out, said John Tronson, principal of Ramsey-Shilling Co. "There were bargains out there last year," he said. "People could buy and convert to residential. Now the word is out what people are paying and prices are getting to the point where they are not making sense to a lot of buyers."

Nevertheless, the run-up in values has created some unexpected opportunities. ScanlanKemperBard paid $34 million, or $171 per foot, for the CNN tower last year, intending to do some renovations and hold it for seven years. However, in the fall it received an unsolicited offer for the building exceeding $260 a foot. The deal didn't work out, but it prompted the company to list the 6430 Sunset Boulevard building for sale. There is no set asking price, said ScanlanKemperBard principal Todd Gooding.

Most transactions have been geared toward mixed-use development. Ullman Investments, an entity controlled by Grant Parking Inc. owner Steve Ullman, closed escrow on its sale of the 18,600-square-foot former KFWB building to Seeond Street Ventures, which plans a mixed-use residential development. The 70-year-old structure and accompanying half-acre of land at 6230 Yucca St. went for close to its $6.4 million asking price, said Second Street Ventures principal David Jordon.

In November, Broadstone Hollywood LLC, formed by Prudential Real Estate Investors and Alliance Realty Partners, paid about $29 million for the 200,000-square-foot office building at 7060 Hollywood Blvd., said Drew Colquitt, a principal of Alliance. Broadstone is considering both commercial and residential options for the 35-year-old building, which is currently 40 percent occupied.

The Community Redevelopment Agency paid $5.8 million for 35,000 square feet of land at 1720 Gower St., said Tronson, who represented both the CRA and seller, Presbyterian Church of Hollywood. The CRA plans to build permanent supportive housing for the homeless, said Helmi Hisserich, CRA's Hollywood regional administrator.

CIM Group and the Lee Group paid $1.42 million for 11,200 square feet of land near the corner of Western Avenue and Hollywood Boulevard, to expand the footprint of their planned mixed-use development there, said Lee Group principal Jeff Lee. The property is adjacent to a CRA redevelopment parcel which C]M and the Lee Group are also negotiating to buy. The goal is to build between 80 and 111 condos and about 14,000 square feet of retail.

A larger project, on the southeast block bounded by Hollywood Boulevard and Vine Street, has also expanded. The 5-acre W hotel and residential project is now slated to have 375 apartments, up from the original 262, and 150 condos, up from 98. Final approvals for the $400 million project, developed by Legacy Partners, Gatehouse Capital Corp. and HEI Hospitality, are expected in the coming months. If they can clear out the remaining property owners, groundbreaking is planned for the second half of the year.

Major Events:

* Ullman Investments sold the former KFWB building at 6230 Yucca St* for close to $6.4 million to Second Street Ventures, which plans a mixed-use residential development.

* Broadstone Hollywood LLC paid about $29 million for the 200,000square-foot office building at 7060 Hollywood Blvd. and is considering commercial and residential development options.

* John Laing Urban, a division of John Laing Homes, received approvals for its $80 million development at 1633 La Brea Ave.

* CIM Group and the Lee Group paid $1.42 million for 11,200 square feet of land at Western Avenue and Hollywood Boulevard on which they'll expand their planned mixed-use development