DONE DEAL: A retail real estate investor has closed on its purchase of the 29,000-square-foot building housing Fred Segal’s Los Angeles boutique.
CormackHill LP bought the property from 8100 Melrose Associates LLC. Both parties were represented by brokers for Kennedy Wilson in the deal.
Details of the transaction were not disclosed. Commercial real estate listings service LoopNet listed a $7.5 million mortgage on the retail building at the time of a 2013 refinance. Average retail asking prices in Los Angeles is $346 per square foot, according to LoopNet.
The listing attracted both private capital and institutional investors locally and abroad, according to the brokerage, especially given its prime location and renowned tenant in Fred Segal. And, unlike, most real estate in Los Angeles, the site boasts a 102-space parking lot.
Fred Segal also has an outpost at Los Angeles International Airport. A 24,000-square-foot location in Santa Monica is set to close at the end of this month to make way for redevelopment of the building it’s in. Meanwhile, buildout on the company’s 20,682-square-foot store at the Runway Playa Vista project is in the works. The first Fred Segal store in Japan opened last year in Tokyo and was followed up this month with a second location, also in Tokyo.
New York-based Sandow Media acquired the retailer in 2012 with the aim of expanding the brand’s retail base and licensed products.