Beverly Hills Building Sells At Record Price
Aug 25, 2009 11:29 AM
Lladro Realty sold an 11,333-square-foot retail building on Rodeo Drive in Beverly Hills, Calif. to Allied Golden LLC for $28 million in an all-cash transaction. The building contains 9,638 square feet of rentable retail space and is net-leased on a long-term basis to Hugo Boss.
The sale price translates to approximately $2,471 per square foot. The cap rate on the transaction was 4.7 percent. Both the sales price and the cap rate are considered record in today’s market. According to Orbell Ovaness, senior investment advisor with National Equity Advisors, one of the brokers representing the seller in the transaction, the building is one of only a few on Rodeo Drive to feature subterranean parking. David Feldman and Justin White, of Marcus & Millichap Real Estate Investment Services, also served as brokers for the seller.
“The sale indicates that investors are still interested in class A-assets occupied by strong credit tenants in prime locations,” says Feldman. “Over the long-term, the new ownership will capitalize on this property’s irreplaceable location in one of the most sought-after retail markets in the world.”
Lladro Realty originally bought the two lots that house the property in 1994 for a total of $14 million. The company plans to re-invest the proceeds from the sale into its main business, which is porcelain production.
Other Notable Deals
Cohen Financial secured a $23 million term loan for a new 85,301-square-foot Whole Foods building in the Lincoln Park section of Chicago. The non-recourse loan, arranged through TCF National Bank, features a fixed rate and a five-year term. The Lincoln Park store is the third largest Whole Foods store in the world. The property was developed by CRM Properties Group, Ltd…. J. Freed & Associates appointed Matanky Realty Group as the exclusive leasing agent for a three-property shopping center portfolio in Illinois. The portfolio includes Evanston Plaza, a 230,000-square-foot community center in Evanston; Liberty Plaza, a 61,832-square-foot center in Matteson and the Landings, a 612,000-square-foot regional center in Lansing.
(To have your deals included in our weekly roundup, please email releases to David Bodamer or Elaine Misonzhnik.)
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