The actress has quietly purchased the Hollywood property with her business partner Gary Landesberg and is working on turning it into an exclusive restaurant and lounge, according to

Sources tell the website the venue will be a Hollywood post of London's trendy Arts Club, which costs $2,000 (£1,250) to join and another $2,000 in annual membership fees.

Landesberg is chairman of the U.K.'s Arts Club, where Paltrow serves as an investor and board member.

Flynt announced the closure of the existing Hustler store in October (14) as part of a major Sunset Boulevard redevelopment programme. He plans to reopen the sexy store near the Dolby Theatre.