Shopping Center Business

MAY 2018

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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14 • SHOPPING CENTER BUSINESS • May 2018 NEWSLINE RODEO DRIVE RETAIL PROPERTY SELLS FOR $110 MILLION, DOUBLE THE PURCHASE PRICE FROM 24 HOURS EARLIER A subsidiary of Paris-based LVMH has purchased a 6,200-square-foot retail building at 456 N. Rodeo Drive in Beverly Hills, California, for $110 million. Just one day earlier, Palm Beach, Florida- based Sterling Organization purchased the same asset for $55 million from The Karl B. Schurz Trust. An intermediary approached LVMH, parent company of Louis Vuitton, to lease space at the property, but the luxury goods conglomerate expressed interest in acquiring the space instead. The sale equates to roughly $17,750 per square foot and a net gain of approximately $55 million for Sterling and its institutional investor partners in its Sterling Value Add Partners II fund. The property is located in the Golden Triangle, between Santa Monica Boulevard and Brighton Way. A Wall Street Journal article reports that LVMH already owns Celine-occupied 319-323 N. Rodeo Drive and Bijan- occupied 420 N. Rodeo Drive, which it purchased in 2012 and 2016, respectively, according to data from Real Capital Analytics. JAMESTOWN SELLS CHELSEA MARKET TO GOOGLE FOR $2.4 BILLION Jamestown LP has sold Chelsea Market in Manhattan to Google Inc. for $2.4 billion. Formerly a Nabisco factory in the West Chelsea district, the nearly 1.2 million-square-foot complex features office and retail space, as well as a large food hall on the ground floor that serves more than 500,000 locals and tourists on a monthly basis. The property occupies an entire city block bounded by Ninth and Tenth avenues between 15th and 16th streets. Jamestown will continue to manage Chelsea Market's food hall and retail component. "I don't think we could think of a more appropriate buyer and better steward for the asset. We've been working with Google for 17 years and we've watched them grow from 30 people in an office to now being one of the largest tech employers in the city," says Michael Phillips, president of Jamestown. "It's a bittersweet day. We've spent a lot of time there, and we love all the tenants. We'll continue to have our offices there, but I think it's a good time for Google to step in." In 2010, Jamestown and its partners sold 111 Eighth Avenue, a roughly 3 million-square-foot office building in Manhattan, to Google for nearly $1.8 billion. Jamestown owned 70 percent of that property, which sits directly across Ninth Avenue from Chelsea Market. MATTHEWS REAL ESTATE ARRANGES $41.7 MILLION SALE OF SHOPPING CENTER Matthews Real Estate Investment Services has arranged the sale of Del Oro Marketplace, a shopping center located in Oceanside, California. A San Diego- based private seller sold the property for $41.7 million. The property features 102,000 square feet of retail space. El Warner and Caitlin Zirpolo of Matthews Real Estate Investment Services, along with Reg Kobzi and Joel Wilson of CBRE, represented the seller in the transaction. The buyer was an undisclosed private investor.

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