BEVERLY HILLS, CA-Maxxam Enterprises has signed yoga brand Lululemon to a long-term lease for a 6,400-square-foot store space at the Promenade Gateway building in Santa Monica's Third Street Promenade. The building is located at the corner of Third Street and Broadway across the street from the Santa Monica Place Shopping Center.

“We welcome Lululemon to our property on the Third Street Promenade, one of the world's most famous shopping streets,” says Mehdi Soroudi, a principal partner with Maxxam Enterprises. “Santa Monica is a symbol of Southern California healthy living and we believe Lululemon is an ideal fit for our property.”

CBRE first VPs Alex Kozakov and Patrick Wade explained in a recent GlobeSt.com interview that street-front or high-street retail in Los Angeles, like the Third Promenade, tends to attract customers with higher disposable incomes and offers a unique shopping experience. These areas are in the greatest demand of institutional and private investors, he explains, because they have higher occupancy and rent growth.

For this reason, the Third Street Promenade has been known to attract high rents. In September, It'Sugar signed an eight year lease at the Promenade for a record-breaking $312 per square foot. Prior to that, $240 per square foot was the highest lease amount. Avision Young principal Randy Starr, who represented the landlord in the transaction believes that everything in the Promenade will now be leased over $300 per square foot. The Lululemon lease value was undisclosed.

Maxxam purchased the Promenade Gateway building in 2003. It plans to renovate the building exterior for Lululemon prior to the store opening in 2014.

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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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