Simpson tells GlobeSt.com that the theater, which last showed movies in the 1970s, has been empty since then except for a souvenir shop of less than 1,000 sf. The building had fallen into disrepair and the two owners who had inherited it, who were not commercial real estate industry professionals, were unsure what to do when they received an unsolicited offer from a prospective buyer. In addition, the property was encumbered by a long-term ground lease with about 20 years remaining.

Crobar acquired the property through an LLC called 6506 Hollywood Holdings. The two private sellers, from Upland and Hollywood, are cousins who inherited the theater from their mothers, who took ownership of it in the 1920s.

According to Simpson, the sellers "were happy to sell the property because it was in such bad condition," while the buyer "was delighted to own a historic property in a prime location for the price that reflected an opportunity to add value through renovation." Simpson adds that the Fox Theater is poised to capitalize on the resurgence of Hollywood, where new projects and restorations of existing properties have created a redevelopment renaissance in recent years.

According to Rob Vinokur, partner for Crobar, the Hollywood location will be the fifth city to launch the Crobar brand, which currently has operations in Buenos Aires and the flagship venue in Chicago launched in 1991. Crobar previously operated in New York City's industrial West Chelsea from 2003 to 2007 and in Miami's South Beach in the historic deco Cameo Theater, which was renovated and opened as Crobar in 2000.

Vinokur says that Crobar was attracted to the Fox Theater not only for its location and old Hollywood allure, but also for its architectural attributes, such as its ceiling heights. He calls the building "a great, flexible space." He hopes to begin the renovation within the next 60 days and to open the new venue in October.