Hollywood parcel.

When it comes to redeveloping the 10-acre Hollywood parcel that includes the famed Magic Castle, it may not be as simple as "open sesame."

That phrase, the password for a sliding bookcase entrance to the magic clubhouse, won't open any doors for a prospective buyer hoping to get the project entitled for development.

It was announced this summer that the property at the base of the Hollywood Hills, which also includes Yamashiro restaurant, would be sold by the Glover family, the longtime owners of the site. Bids are said to be in the $70 million range. The property also includes lesser-known apartment buildings and two hotels. Offers are due Sept. 28, said Marc Renard of Cushman & Wakefield Inc., who has the listing.

However, Hollywood real estate players say that the site is complicated and the historic nature of the magic clubhouse and the restaurant--which wouldn't change in their uses--make it a tricky proposition.

"Most of my clients who are existing developers in Hollywood are reluctant because it requires density to be put on that site to justify (the price)," said John Tronson, a principal in the Hollywood office of Ramsey-Shilling Commercial Real Estate Services Inc. "Because of hillside construction, historic issues and ingress and egress, many of the larger developers are reluctant to try to get a project that controversial entitled."

The best redevelopment play appears to be for more hotel development at the site. Renard said that the property has attracted "worldwide interest" and that a redevelopment plan would make the site more upscale.

"The concept is to create a world class destination that would include the existing hotels and restaurants and perhaps additional density in the form of more hotels," Renard said.

Tronson, a Hollywood real estate expert, said that a prospective buyer would have to battle neighborhood groups to get a project approved. "A few clients we've represented have said, 'You are going to get into a knock-down drag out battle with some of the local neighborhood groups and you need their support,'" he said.

The Magic Castle, which is the headquarters of the Academy of Magical Arts Inc., was built in 1908 and turned into a magic clubhouse in 1963 by owner Thomas O. Glover.

Staff reporter Daniel Miller can be reached at dmiller@labusinessjournal.com or (323) 549-5225, ext. 263.