LOS ANGELES-Candy and gift retail store It'Sugar signed an eight-year lease with the Third Street Promenade in Santa Monica valued at $6.2 million. At $312 per-square-foot, the lease breaks the retail center's price-per-square-foot record. Avision Young, a commercial real estate services firm, principal Randy Starr represented the landlord, Promenade Enterprises LP, in the transaction.

“This lease sets a new benchmark for the Promenade,” says Starr. “The highest per-square-foot rent for Third Street prior to this lease was $240 annually. I think everything from here out will be leased at over $300 [per-square-foot] as retailers understand the intrinsic value of the district and can justify paying top dollar as their sales continue to prove the value.”

It'Sugar was one of several retailers looking to move into the 2,250-square-foot space, but was plucked from the pack due to the specialty product lines the store carries, which include unique candy products and brands, specialty clothing and games all branded for pre-teen and teenaged girls.

The space will be ready for the retailer to move in on March 2014, after the current tenant, Journeys shoe store, departs in January. The company currently has 70 retail locations in major cities around the world, including London, Dubai, New York and San Francisco.

In December 2012, GlobeSt.com learned exclusively that George Smith Partners arranged a $7-million full cash-out loan for a private client on a 7,500-square-foot property on Santa Monica's Third Street Promenade. At the time, the deal was an example that per-square-foot values and rents at Third Street Promenade were some of the highest in Los Angeles. This deal illustrates that values and rents have continued to climb.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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