The sizzling rate at which Hollywood office buildings are being converted into expensive residences is getting too fast for even some of its original proponents – the city of Los Angeles and members of the local business community.

While initial conversions mostly have been of unoccupied older buildings, developers recently have begun targeting more modern offices that have significant occupancy.

Much of the recent concern was sparked by Phoenix-based Alliance Residential Co., which paid $29 million for the 180,000-square foot office building at 7060 Hollywood Blvd.

The company informed city officials last month that it plans to convert the building on the southwest corner of Hollywood Boulevard and Sycamore Avenue into high-end residences.

“That really opened our eyes,” said Leron Gubler, executive director of the Hollywood Chamber of Commerce, which has been lobbying city officials to protect the community’s remaining office buildings.

The property is one of the neighborhood’s largest office buildings and is adjacent to a twin tower at 7080 Hollywood Blvd. that is completely filled with office tenants.

City officials say that if 7080 is successful in attracting tenants there is little reason that 7060 can’t be revitalized to do so also. Moreover, there is concern that other Hollywood buildings currently for sale – such as the CNN building on Sunset Boulevard – could be next.

If the buildings are taken off the market, and no new offices are built, then much of Hollywood’s office tenants could be forced to relocate to surrounding communities.

The concerns prompted the Hollywood Chamber of Commerce to set up a meeting next month among city officials, property owners and developers to discuss ways to balance residential and office development.

Already the offices of Mayor Antonio Villaraigosa and Council President Eric Garcetti, whose 13th District includes most of Hollywood, and the Community Redevelopment Agency of Los Angeles are debating ways to amend the city laws that allow the conversions in Hollywood.

While a proposal is still being hammered out, the city officials are also looking at ways to influence the construction of office buildings by changing the area’s zoning and preemptively entitling parcels for office buildings.

“In a way, it’s become too much of a good thing,” said Helmi Hisserich, the head of the Hollywood office of the redevelopment agency. “The intention wasn’t to flush out tenants and convert functional office buildings.”

Shrinking supply
As in downtown Los Angeles, converting older Hollywood office buildings into high-end apartments has caught on quickly.