Introduction to Rodeo Drive Retail Sale
A Tom Ford, Moncler and Balenciaga-leased property on Rodeo Drive sold for more than $400 million.
Ronan McNamee’s ECA Capital Limited was the seller. The company purchased the 28,000-square-foot property at 338 North Rodeo Drive for $81.5 million in 2007 — and McNamee refinanced the property at $160 million six years ago. The identity of the buyer wasn’t immediately known.
The Sale and Its Implications
The deal is believed to be the second-highest sale ever in Beverly Hills, after Nicholas and Christian Candy’s $500 million purchase of what was once a Robinson’s-May department store in 2007. The 338 North Rodeo Drive sale could be a one-property record for the famed street, and the building may have fetched the lavish price because of its development potential.
Other Notable Sales on Rodeo Drive
Other pricey retail sales along the iconic street include LVMH’s $245 million purchase of a 22,300-square-foot, two-story double lot at 468 North Rodeo Drive; hotelier Efrem Harkham’s $200 million sale of the 43,000-square-foot lot that held a boutique hotel plus three retail stores at 360 North Rodeo Drive; and Crown Equity’s Michael Shabani’s purchase of two storefronts spanning 11,600 square feet at 457-459 North Rodeo Drive for $112 million.
Caruso’s Support for Small Businesses
Billionaire Rick Caruso’s nonprofit announced a $1 million donation from Banc of California’s Wildfire Relief & Recovery Fund for small businesses. The small business initiative aims to support retailers, restaurants and other businesses in Altadena, Malibu and the Pacific Palisades impacted by the wildfires earlier this year via direct grants of up to $50,000.
Hudson Pacific Properties’ Losses
Hudson Pacific Properties has fallen on hard times. The company reported an $83 million loss for the second quarter compared to a $47 million loss a year earlier. Revenues decreased to $190 million from $218 million a year ago because of declining office occupancies and discounted asset sales — that includes a San Francisco office building the company sold earlier this summer for $28 million, about half the $56.5 million Hudson Pacific purchased it for a decade ago.
Office-to-Residential Conversion in Westwood
Douglas Emmett plans to turn an office tower it purchased for $131 million from Tishman Speyer through a deed-in-lieu of foreclosure into apartments. The 17-story, 247,000-square-foot office building at 10900 Wilshire Boulevard, coupled with a residential building Douglas Emmett plans to construct on the same lot, is set to become a 320-apartment complex in Westwood.
Law Firm Lease Renewal
Law firm Behar Gibbs Savage Paulson renewed its about 36,000-square-foot lease across two floors at One World Trade Center in Long Beach. Behar Gibbs Savage Paulson has occupied the top two floors of the 27-story, approximately 575,000-square-foot building for the last 35 years.
Mixed-Use Development in the Arts District
The Los Angeles City Council gave the green light for Danish architect Bjarke Ingels’ mixed-use high-rise development in the Arts District. The project at 670 Mesquit Street, which has been in the works for almost a decade, is set to hold four interconnected towers, the tallest of which would be 34 stories.
Conclusion
The sale of the Rodeo Drive retail property for $400 million highlights the ongoing demand for luxury retail spaces in Beverly Hills. Meanwhile, other developments in the Los Angeles area, such as the office-to-residential conversion in Westwood and the mixed-use development in the Arts District, demonstrate the city’s efforts to adapt to changing market needs and support local businesses.
FAQs
- Q: What was the sale price of the Rodeo Drive retail property?
A: The sale price was over $400 million. - Q: Who was the seller of the property?
A: Ronan McNamee’s ECA Capital Limited was the seller. - Q: What is the plan for the office tower purchased by Douglas Emmett?
A: The plan is to convert the office tower into apartments as part of a larger 320-apartment complex in Westwood. - Q: What is the estimated total cost for the mixed-use development in the Arts District?
A: The estimated total cost is $1.4 billion. - Q: What is the purpose of Rick Caruso’s nonprofit donation?
A: The donation aims to support small businesses impacted by the wildfires in Altadena, Malibu, and the Pacific Palisades.
