Festival Cos. Buys $40M Gucci Building

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BEVERLY HILLS, CA-The Festival Cos., an investment partner of Goldman Sachs, has acquired the 13,500-sf Gucci Building on Rodeo Drive for $40 million as the first investment by a new fund that plans to invest up to $800 million over the next three years. Mark Schurgin, fund principal and Festival Cos. president, says that the newly launched fund plans to invest in ground-up and existing retail properties from coast-to-coast.

Gucci is the sole tenant in the building at 347 N. Rodeo Dr. and has been in the space for about 20 years. The Festival Retail Fund bought the property from New York-based Friedman Equities in a transaction that was brokered by Jay Luchs of B Richard Ellis and a Cushman & Wakefield team of Steve Algermissen, Andrew Harper and Leslie Mayer.