The days of the humble little Jack in the Box restaurant across from Amoeba Records on Sunset are probably numbered, and it's kind of amazing it took so long—the property's already surrounded on all sides by fancy cafes and gastropubs, Amoeba and Arclight, and the Space1520 hipster mall. The LA Business Journal reports that the half-acre site is going to be sold to RD Olson Development for $13.8 million; the company was one of "six aggressive bidders" and the property was under contract within three weeks of going up for sale; the sellers, who have owned the property "for more than four decades," were surprised by all the excitemenet (which is maybe why they waited so long to sell). There's no word yet from RD Olson about what's going to happen to the site, but, for the price they paid, they're probably going to want to put up a hotel.
The pricetag on the land works out to $581 a square foot; to date, the only more expensive deal in Hollywood was for the property that the TCL Chinese Theatre sits on, which leased for $714 per square foot. "[$581 is] an aggressive price per foot," says one broker, "You can't really make that pencil as an apartment project, but knowing who they are, they probably want to do a hotel project." RDO has developed at least 10 Marriotts and has two more in the works in Pasadena and Burbank.
Jack in the Box opted to extend its lease for another five years before the property sold, so it'll be around until 2019. RDO probably needs about that long to get all its plans together anyway.
And if the plan is to build a hotel, it would be one of at least nine planned or underway, including a 12-story hotel on Wilcox, a boutique hotel on the other side of Cahuenga (about 500 feet away from the Jack in the Box), and the in-the-works, futuristic Dream Hotel up the block at Selma Avenue.
· Fast-Food Site to Serve Up Hotel? [LABJ]
· Boutique Hotel Headed For Cahuenga in the Heart of Hollywood [Curbed LA]
· Hollywood's Dream Hotel Getting Bigger But Reducing Parking [Curbed LA]