An 8,800-square-foot retail site in Beverly Grove just traded for $7.5 million, or $850 a square foot. Ian Strano, an executive vice president at NAI Capital who brokered the deal, said the buyer, Arash Danialifar, swallowed the high price because he plans to replace the building with a larger development.

“These deals sometime need someone with a bigger vision,” Strano said. “This particular buyer is a very skilled retail guy who understands what to do when owners want a high price per square foot.”

One option is to demolish the one-story building, currently a furniture showroom, and construct a taller complex incorporating ground-floor retail and upper-floor office space targeting local entertainment companies. The size bump will be feasible given the 20-car parking lot on site and ability to hire a parking service to provide for extra cars.

The seller, San Francisco-based Hamilton Partners, purchased the building in 2007 for $5.5 million.