BEVERLY HILLS, CA—Chinese developer Dalian Wanda Group has completed the purchase of a land site in Beverly Hills, CA, where Robinson's May was formerly located. The Wanda Group purchased the property from Joint Treasure International for more than $400 million. In an earlier story, GlobeSt.com reported that the Wanda Group won the purchase over at least 10 other foreign and domestic investors for the land site, where it plans to develop a $1.2-billion mixed-use complex.

Joint Treasure International purchased the property in 2011 for $148.3 million in a foreclosure transaction from a bank consortium led by Carlos Slim. Previously, London-based Candy & Candy purchased the property for $500 million, financing $365 million through the Carlos Slim consortium. Joint Treasure International planned to develop on the property, but never proceeded with the development plans. According to Natsis, this sale, and the substantial profit made by the seller, shows the strength of the market, specifically for very high-end trophy properties.

“This property is a good case study for real estate cycles, especially for development parcels,” Tony Natsis, an attorney at Allen Matkins, tells GlobeSt.com. “It followed the cycles pretty well because it is an iconic property. You are not going to find another parcel with this kind of access and views. It rode the up cycle, the down cycle and then the up cycle again. Now we are in this monster cycle, and Joint Treasure International knew that they would get more money out of selling it now than developing it and holding it in the long term. The Wanda Group is a long-term holder of super iconic properties, so they are going to have it forever and someday it is going to be worth more than they bought it for, but they are going to have to hold onto it for a long time.” Natsis along with Allen Matkins attorney Crystal Lofing represented the seller as legal counsel. CBRE brokers Laurie Lustig-Bower and Rebecca Shum and Savills' brokers Robert Stamm and Frank Marriott marketed the property together. Charles Seaman and Phillip Babich from Reed Smith represented the Wand Group.

“This was an opportunity to develop a high-profile, entitled property located in one the most recognizable cities in the world,” says Lustig-Bower, one of the seller's CBRE brokers. “Full entitlements from the appropriate municipalities have been carefully processed by a previous owner, which will allow the buyer to leverage the value already created and promptly commence construction. This project will be a game changer for the Beverly Hills market, which is extremely supply-constrained when it comes to luxury residential condominium product.”

 According to Natsis, the two parties signed a PSA agreement within five days of accepting the Wanda Group's offer. The turnaround was so quick because Joint Treasure International had completed all of its own due diligence. “We did the diligence on this property when we were selling it like we were going to buy it again,” Natsis says. “Because this was set up appropriately, Wanda knew exactly what they were getting when they entered into the contract. There was no great surprise.”