CIM Group has acquired a 5.7-acre site in East Hollywood occupied by the old Hollywood Sears store that closed in 2008, with plans to develop a mixed-use project with up to 700 rental units and 300k SF of retail there. The 100k SF Sears building will be renovated as part of the development, which is expected to break ground next year, reports the L.A. Business Journal.

While terms were not disclosed, industry sources say CIM Group paid $53.5M for the property, or $8.2M per acre. Development of the property at 5601-5667 Santa Monica Blvd would be a positive change for this neglected neighborhood.

Culver City developer Continental Development Group acquired the property in 2009 with plans for a $275M mixed-use project, with 475 residential units and 380k SF of retail. The project was delayed by opposition by the La Mirada Neighborhood Association and abandoned during the recession. The La Mirada Neighborhood Association is the same group that stopped construction of the Hollywood Target in 2012 and more recently forced closure of CIM Group’s new Hollywood apartment tower at 5929 Sunset Blvd because the developer had failed to preserve a deteriorated historic building on the site. [LABJ]