POSH HOTEL PROPOSED FOR COMPLEX SHOW BIZ CLIENTS TARGETED.

GLENDALE - A developer has proposed converting an office building complex at North Brand Boulevard and West Lexington Drive vacant since last July into a boutique hotel catering to an upscale entertainment industry clientele.

Under a proposed partnership, the city would loan Nicholson Vertex LP $5.5 million to $7 million for the project, provided the developer can secure a lender and suitable hotel operator, Jeanne Armstrong, director of the Redevelopment Agency, said Friday.

The proposed hotel, estimated to cost $30 million to $35 million, would have 175 rooms offering 3 1/2- to 4-star service. A restaurant, fitness room and banquet/meeting space would also be included. As a boutique hotel, it would offer highly personalized service and uniquely designed rooms.

``We think a hotel is definitely a good fit for the North Brand area,'' said Siavash Barmand, managing partner of Nicholson Vertex. ``It anchors the whole downtown at the north end. It keeps the retail flow from the Galleria and the shopping center all the way north, toward where the building is.''

The hotel project is proposed for a series of interconnected buildings located at 401-413 North Brand Blvd. and 121 West Lexington Drive. The buildings, which range from nine stories to one story, previously served as headquarters for the Glendale Federal Savings and Loan, which was later bought by CalFed.

The nine-story tower is current being considered for the California Historical Registry. The developer said they are getting input from the Los Angeles Conservancy on how to upgrade the building exterior.

So far, hotel operators MeriStar and Pan Pacific have expressed interest in the project.

Locally, MeriStar manages the Los Angeles Marriott, the San Pedro Hilton and the Century City Courtyard. Pan Pacific operates two five-star hotels in Vancouver, British Columbia, and San Francisco, and a 120-room boutique hotel in Whistler, British Columbia.

Nicholson and Vertex hope to have a deal put together in the next two months. Construction and permitting are expected to take 14 to 16 months.

The loan from the city would be amortized over 10 years at an interest rate of 5.5 percent. The city projects it would earn $2.9 million in interest and receive $720,000 to $780,000 per year in hotel occupancy tax.

In addition, the city estimates it would receive $38,000 in sales tax and $200,000 in tax increment annually because of higher property value resulting from the development.