Lease-back deal raises fear capitol views may be Lost.

Now that the Capitol Records Tower has been sold, preservationists and Hollywood boosters are likely pleased that the landmark will retain its original use as an office building.

But another cause for hand wringing could emerge as the new owner makes plans to develop adjacent property.

Argent Ventures LLC, which purchased the 13-story Hollywood landmark and surrounding property for $50 million from Capitol Records' parent EMI Group PLC, plans to develop the remaining land on the two-acre parcel. A mixed-use development is one possibility.

Linda Dishman, executive director of the Los Angeles Conservancy, said that any new development at the Vine and Yucca streets pareel should preserve the tower's prominent place in the Hollywood skyline.

"One of the reasons that the building is so well-known and beloved is because of its views from the 101 Freeway," Dishman said. "(Preserving) the view corridor from different vantage points in L.A. is going to be very important."

The tower was built in 1956 and is meant to look like a stack of vinyl records. Musicians like Frank Sinatra and The Beach Boys recorded there.

As part of the deal, the famed circular building will not be converted to condominiums as had been speculated, but will be leased back to EMI so Capitol's operations can remain there. Capitol Records and Capitol Studios also will continue to occupy the adjacent Gogerty Building. The sale also includes a parking lot on Argyle Avenue.

Chris Bonbright, chief executive at Ramsey-Shilling Commercial Real Estate Services Inc., said that Argent will work with community groups as it makes plans for development of the site.

"We will build something on the property that is appropriate, environmentally sensitive and historically sensitive to the magnitude of this physical icon," said Bonbright, who represented Argent in the deal. "It will be a landmark status quality. One of the strong qualities of the buyer is that they are historically sensitive."

Ever since EMI told city officials in March that it would be open to selling the tower, conservationists have expressed concern for the fate of the tower. Dishman said the structure is eligible for the National Historic Register and is in the process of being designated a Los Angeles Historic-Cultural Monument by the City Council. She called the building "one of the top iconic buildings of L.A."

Ramsey-Shilling's Frank Buckley and John Tronson also represented Argent on the deal. EMI was represented in-house.