The Viper Room will be renovated as part of the redevelopment
project at 8850 Sunset Blvd. (photo by Sam Mulick)

After falling into foreclosure, the 8850 Sunset Blvd. redevelopment project has been rescued.

Silver Creek Development acquired a $71 million loan from Centennial Bank and Crestline Investors to cover design and permitting costs for the Viper Room redevelopment ahead of a scheduled foreclosure sale on July 17.

The project, which fell into foreclosure in May, is a planned 11-story mixed-used structure with 78 residential units, a 90-room hotel, restaurant spaces, conference rooms and a new Viper Room night club. Currently, the Sunset Boulevard block has several empty storefronts. The project was approved by a 3-2 West Hollywood City Council vote last August with Mayor Chelsea Byers, Councilman John Erickson and former Councilwoman Sepi Shyne supporting the project, while Vice Mayor John Heilman and Councilwoman Lauren Meister dissenting at the time. Meister and Heilman expressed concerns that the property developer would be able to finish the project.

West Hollywood Heights Neighborhood Association chair Elyse Eisenberg said she hopes the project does not proceed until it is certain that Silver Creek Development has the money to finish the construction.

“We don’t want another enormous hole in the ground like the Melrose Triangle Swamp – or what Silverwood has done with another property they own in WeHo – 1120-1124 Larrabee, next to the [Interactive Corporation] building,” she said. “This project was approved years ago. They razed the property in 2022 but never began construction. It is now an empty construction site and eyesore blight on the residential street.”

“[Silver Creek Development] are not showing they have a solid track record to complete projects in WeHo,” Eisenberg added. “Given that Silverwood allowed a high-profile project like the Viper Room to fall into bankruptcy once, and their track record on the Larrabee project, the city should seriously weigh approving anything to which Silverwood is attached.”

Silver Creek Development did not respond to a request for comment.