Simpson tells that the theater, which last showedmovies in the 1970s, has been empty since then except for asouvenir shop of less than 1,000 sf. The building had fallen intodisrepair and the two owners who had inherited it, who were notcommercial real estate industry professionals, were unsure what todo when they received an unsolicited offer from a prospectivebuyer. In addition, the property was encumbered by a long-termground lease with about 20 years remaining.

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

According to Simpson, the sellers "were happy to sell theproperty because it was in such bad condition," while the buyer"was delighted to own a historic property in a prime location forthe price that reflected an opportunity to add value throughrenovation." Simpson adds that the Fox Theater is poised tocapitalize on the resurgence of Hollywood, where new projects andrestorations of existing properties have created a redevelopmentrenaissance in recent years.

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