Introduction to Rodeo Drive Retail Property
A Rodeo Drive property that is leased to Tom Ford, Moncler and Balenciaga stores has sold for over $400 million, sources with knowledge of the deal told The Real Deal.
The transaction, which amounts to $14,228 per square foot, is believed to be a one-property record on the iconic street and the second-highest sale ever in Beverly Hills.
The Property and Its History
The seller was Ronan McNamee’s ECA Capital Limited, which purchased the 28,000-square-foot property at 338 North Rodeo Drive in 2007 for $81.5 million, less than $2,900 per square foot, according to property records. The identity of the buyer wasn’t immediately known.
Sitting on a double-wide lot, the building was purchased with its development rights in mind, one of the sources said.
The Deal and Its Brokers
Newmark’s Jay Luchs brokered the deal. Michael Shabani, who runs Los Angeles-based investment firm Crown Equity, was involved in the deal. Neither returned requests for comment.
McNamee, who wasn’t immediately reachable, refinanced the property for $160 million, or $5,691 per square foot, in 2019.
Rodeo Drive Retail Sales
Rodeo Drive — where rents average $1,000 per square foot per year plus triple net — has notched some hefty retail investment sales prices in recent years.
Those include LVMH’s $245 million purchase of a 22,270-square-foot two-story double lot at 468 North Rodeo Drive (or $11,001 per square foot); hotelier Efrem Harkham’s $200 million sale of the 42,560-square-foot 360 North Rodeo Drive that housed his Luxe boutique hotel plus three high-end retail stores (or $4,699 per square foot); LVMH’s $110 million acquisition of the 6,200-square-foot property at 456 North Rodeo Drive (or $17,742 per square foot); and Shabani’s purchase of two storefronts spanning 11,600 square feet at 457-459 North Rodeo Drive for $112 million (or $10,500 per square foot).
Comparison to Other Deals
In Beverly Hills, the 338 North Rodeo Drive deal is believed to mark the second-highest deal for a single property behind Nicholas and Christian Candy’s 2007 $500 million purchase of the former Robinson’s-May department store site.
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Conclusion
The sale of the Rodeo Drive property for over $400 million marks a significant milestone in the retail property market. The deal highlights the value of prime retail locations and the ongoing demand for high-end retail space.
FAQs
Q: What is the price per square foot of the Rodeo Drive property?
A: The price per square foot of the Rodeo Drive property is $14,228.
Q: Who was the seller of the property?
A: The seller of the property was Ronan McNamee’s ECA Capital Limited.
Q: What is the average rent per square foot per year on Rodeo Drive?
A: The average rent per square foot per year on Rodeo Drive is $1,000 plus triple net.
Q: What is the largest deal for a single property in Beverly Hills?
A: The largest deal for a single property in Beverly Hills is Nicholas and Christian Candy’s 2007 $500 million purchase of the former Robinson’s-May department store site.
