Los Angeles-based developer Villa Vista Ballanca announced today it will be buying out Hollywood’s largest private homeowner group, Hollywood Homeowners.
The deal, first reported by Variety, comes just weeks after it purchased the property formerly known as the Hollywood Theatre.
Hollywood Homeowners will retain its core ownership group and will continue to operate as a company, though Villa’s current owners, The Beverly Hilton & Studio Entertainment, will continue as its sole owner.
According to Variety, the deal could close as early as this month.
“We are excited to be acquiring the historic Hollywood Theater property, one of the most beautiful in Southern California, for the Villas Beverly Hills,” Villa said in a statement.
“We are looking forward to opening the doors to our tenants, neighbors and the community.”
Hollywood, which owns the landmark Paramount Studios, the historic El Capitan, and other iconic buildings in the heart of Hollywood, is in a financial crunch and has been losing cash at an unsustainable rate.
It has been struggling to keep up with the soaring property taxes, which have grown at a rate of almost $8 billion annually, even as the cost of living in the city has been declining.
The city has recently been grappling with the loss of many of its entertainment industries, including the theater and hotel industries, as well as the construction of an artificial lake.
The Beverly Hilton is the world’s largest hotel and spa, with more than 11 million rooms and suites across its portfolio.
The property includes the Beverly Hilton Garden Club, which was purchased by the Hilton in 2000, as part of the acquisition.
The hotel and resort complex is owned by the California resort and entertainment giant, which has been under fire since the announcement of the purchase.