The live-performance theater where the Academy Awards show is held annually has hit the market.

Owner California Public Employees’ Retirement System is selling the Dolby Theatre at 6801 Hollywood Blvd. in Los Angeles, according to marketing materials obtained by CoStar News. JLL is marketing the property for sale.

The property is reportedly expected to sell for less than its cost to build. Large companies including Disney, and more recently Netflix, have been buyers of nearby cinemas in Los Angeles.

Formerly the Kodak Theatre, the Dolby Theatre was built in 2001 along the Hollywood Walk of Fame in the Ovation Hollywood shopping mall. The 3,400-seat theater plays host to numerous live events each year beyond the Oscars and has in the past hosted "American Idol," "America's Got Talent," and a Cirque du Soleil show.

The Academy Awards is contracted to host the Oscars at the theater through 2028, and the property has secured a sponsorship from Dolby through 2032, according to marketing materials. The property also has two parking lots.

Dolby Theatre is located along a stretch of Hollywood Boulevard that has long been a tourist destination in Los Angeles. The theater is near two historic cinemas: Disney's El Capitan Theatre and the TCL Chinese Theatre. Down the street, Netflix bought and is reopening the historic Egyptian Theatre on Nov. 9.

Also nearby is the Pantages Theatre which opened in 1930 and is a competitor for live events with the Dolby Theatre, said Bill Boyd, an executive vice president for Kidder Mathews and a veteran Los Angeles broker who has sold and leased real estate to entertainment tenants. Live theaters experienced revenue difficulties during the pandemic, which shuttered entertainment venues nationwide.

Over the summer, shows were to be indefinitely paused at the Mark Taper Forum in downtown Los Angeles as theaters nationally struggled to reopen. A 2022 study of live theater venues found that the 2021-2022 reopening season saw a 14% decline in the amount of seats sold compared with the 2018-2019 season, according to industry publication American Theatre.

"The difficulty the theater's sale will have is that it's in an environment that the rest of our commerical market finds itself: higher interest rates, higher [capitalization] rates and quality assets selling for less than replacement value," Boyd said.

The Dolby Theatre opened in 2021 at a cost of $94 million, but the venue could trade for about $70 million, according to a Bloomberg report.

A representative for the California Public Employees’ Retirement System didn't respond to an emailed request to comment from CoStar News.

JLL's Carl Muhlstein, Will Poulsen and Peter Hajimihalis are marketing the Dolby Theatre for sale.