The sale involves two components--the so-called retail portion of the complex, which also includes the Kodak Theatre and Wolfgang Puck's catering facilities, and the 640-room Renaissance Hollywood Hotel. The retail portion of the site is fully owned by Trizec, which--as TrizecHahn--developed the complex. Trizec also holds a majority piece of the hotel. Marriott owns the remainder.

Currently, the "parties are working through the due-diligence steps, including contacting the other parties--such as the city--with a stake in the property," the source says.The sale will no doubt be a burden lifted for the folks of Trizec, who had to write the property down twice since it opened in the wake of Sept. 11, 2001. In a classic case of bad timing, the complex had been designed to capitalize largely on Asian tourism, which simply disappeared in the wake of the terrorist attacks. A repositioning was necessary to tap into regional tourism and local interest.

This came on top of cost overruns in the original build. Total construction costs for the project ran to $650 million, with Trizec picking up $540 million of that. The remainder came from the city. Once the sale is complete, Trizec "can get on with its life as an office REIT," says one source. But things are looking up for the entertainment complex, and Lee Anne Stables, marketing officer for Trizec Retail & Entertainment Group, reports that 2003 closed with a 10% hike in retail sales over 2002 and "seven straight months of monthly sales increases. What's more, Hollywood & Highland is home to the much-touted, newly debuted "On-Air with Ryan Seacrest" television show. So far, "It's produced 49.7% increases in daily sales," she reports. "We're thrilled."