Although there has been activity at the inn involving cleaning and painting, a lessee has not been found yet for the site.
By Olivia Damavandi / Staff Writer
The purchase of Malibu Inn restaurant and nightclub property earlier this year was shrouded under mystery, with some theorizing that local developer Richard Weintraub bought it. However, the property is slowly being revived under its new owner, Kambiz Hakim, who bought it at the foreclosure auction in January for a reported $5.3 million.
And while workers interviewed at the property on Monday were painting and cleaning up the interior, they said they had no knowledge of what the future has in store for Malibu’s most famous watering hole, located across from the Malibu Pier on Pacific Coast Highway.
No application from a potential tenant has been submitted to the city, Principal Planner Stefanie Edmondson said Tuesday in a telephone interview.
Jay Luchs, a local broker, said Hakim is asking $8 per square foot in rent for the 7,184-square-foot property, and that he is aiming to fill the vacancy with a restaurant and possibly a small retail store, similar to its current setup.
Hakim, the owner of Paseo Del Mar office building in Santa Monica, also remodeled the 30,000-square-foot office building located at 22761 Pacific Coast Highway, next to Kentucky Fried Chicken, local Realtor Tony Dorn said Tuesday in a telephone interview.
Calls to Hakim have not yet been returned.
The Malibu Inn restaurant and nightclub was among more than 30 Malibu businesses cited last month by the Los Angeles Regional Water Quality Control Board for violating wastewater discharge permit requirements.
Steve Dixon, in the city’s permitting office, confirmed in January that a septic system upgrade permit had been issued to the Malibu Inn in 2004, but that no action was taken thereafter.
A private securities investor who wished to remain anonymous told The Malibu Times in January he had looked at Malibu Inn as well and had decided to pass on the property as an investment opportunity.
“It didn’t look like it was worth a $5.3 million bid to me because of the upgrades that would need to be put into it,” the source said. “Whoever takes this on must spend a considerable amount to upgrade the septic system. My guess is at least a million dollars. So, it would only make sense for a property developer.”
In 2002, the inn, built in 1950 at its current location, had an assessed value of $2,866,863, as listed on the Los Angeles County Office of the Assessor Web site.
“My understanding is that the sale price did not include the liquor or entertainment licenses,” the source said. “I have no idea what the ultimate disposition of the property will be, but you can’t buy it, upgrade it and make any return by selling hamburgers.”
The source said the only reasonable investment strategy for the property would be to “flip” it or tear it down, upgrade the septic system and develop a retail commercial center.
Under the management of owners Mitchell Stewart and his wife, Nurit Petri, since 2002, the fate of Malibu Inn became tenuous following the death of Stewart last year.
In December, The Malibu Times reported that the Malibu Inn had gone into escrow on a $10.5 million sale brokered by Dorn, though the identity of the buyer remained anonymous at that time.
Malibu Inn was originally built in 1920 farther west on Pacific Coast Highway (then known as Roosevelt Highway) and hosted Hollywood stars of the era, such as Harold Lloyd and Gloria Swanson. A post card from the 1940s shows the original Malibu Inn across the street from the entrance to Malibu Colony before it moved eastward to its present location across from the pier.
A generation ago, singer/songwriter Neil Young owned the place for a while, changing the name to Crazy Horse Saloon. The musical influence took and, for the past several years, Malibu Inn has featured some of Southern California’s hottest new rock, funk and jazz acts.