Introduction to Alo Yoga’s New Headquarters

Alo Yoga, a popular activewear retailer, has recently made a significant investment in its future with the purchase of a new headquarters building in Beverly Hills. The company spent $90 million on the 82,900-square-foot La Peer Building at 8942 Wilshire Boulevard.

Details of the Purchase

The purchase price translates to $1,085 per square foot, a significant investment for the company. The La Peer Building, a three-story structure, was sold by Breevast U.S., the American offshoot of Dutch investment firm Breevast. Breevast had purchased the building in 2019 for $107.5 million, making the sale to Alo a 16 percent discount from the previous sale price.

Previous Ownership and Usage

The La Peer Building has been vacant since 2022, when Paradigm Talent Agency left the property. Prior to its vacancy, the building was fully leased, indicating its potential for occupancy and usage. The sale to Alo marks a new chapter for the building, as it prepares to house the company’s business operations.

Market Trends and Implications

The office market in Beverly Hills has seen increasing demand and limited construction, driving down the vacancy rate from 17 percent a year ago to 15 percent. Despite the broader Los Angeles office market being unstable, the purchase by Alo is the latest transaction in Beverly Hills to buck this trend. Other notable transactions in the area include Fashion Nova’s purchase of a 175,000-square-foot building for $118 million and Kilroy Realty’s acquisition of a 290,000-square-foot building for $205 million.

Recent Transactions in the Area

Last year, Fashion Nova bought the 175,000-square-foot building nearby at 407 North Maple Drive from Tishman Speyer for $118 million, or $676 per square foot, for its headquarters. In September, Kilroy Realty bought the 290,000-square-foot building at 345 North Maple Drive for $205 million, or $707 per square foot, making it one of the priciest deals of the year in the Los Angeles area. That same month, a Corinthia Hotels affiliate bought the office building at 9800 Wilshire Boulevard and an adjacent parking structure for $100 million.

Impact and Future Plans

The purchase by Alo is seen as a sign of the area’s attractiveness to high-end investors, who view Beverly Hills as a safe investment in both good and bad markets. "We’ve had a significant drought in investments for a while, but this deal is a sign we’re turning a corner," said Madison Partners founder and president Bob Safai, who represented Breevast in the deal. Alo’s timeline for moving into the building has not been disclosed, but the company plans to relocate its business operations from its current headquarters at 9380 Wilshire Boulevard.

Alo spent $1,085 per square foot, for the 82,900-square-foot La Peer Building at 8942 Wilshire Boulevard, CoStar reported.

Conclusion

The purchase of the La Peer Building by Alo Yoga marks a significant investment in the company’s future and a vote of confidence in the Beverly Hills office market. As the area continues to attract high-end investors and see significant transactions, it will be interesting to see how the market evolves and how Alo Yoga utilizes its new headquarters.

FAQs

• Q: How much did Alo Yoga spend on its new headquarters?
  • A: Alo Yoga spent $90 million on the 82,900-square-foot La Peer Building.
• Q: Where is the La Peer Building located?
  • A: The La Peer Building is located at 8942 Wilshire Boulevard in Beverly Hills.
• Q: Who was the seller of the La Peer Building?
  • A: Breevast U.S., the American offshoot of Dutch investment firm Breevast, was the seller.
• Q: What is the current state of the office market in Beverly Hills?
  • A: The office market in Beverly Hills has seen increasing demand and limited construction, driving down the vacancy rate.
• Q: What are Alo Yoga’s plans for the La Peer Building?
  • A: Alo Yoga plans to move its business operations to the La Peer Building, relocating from its current headquarters at 9380 Wilshire Boulevard.
    

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