Rodeo Drive Retail Asset Breaks Pricing Records
The double lot on the 300 block of Rodeo Drive is home to Rolex, Patek Philippe, Ferrari and a former boutique hotel.
A retail asset on the 300 block of North Rodeo Drive has sold for a record price tag. Located at 360 North Rodeo Drive, the property is home to Rolex, Patek Philippe, Ferrari and a former boutique hotel. The Harkham Family sold the property for $200 million, according to industry sources.
JLL senior managing director Marc Schillinger and EVP Houman Mahboubi represented the seller in the deal, while Jay Luchs of Newmark represented the buyer. The sale generated significant buyer demand from a global pool of qualified buyers, resulting in the record pricing.
According to the brokers, the transaction is also indicative of the continued status of Rodeo Drive as a top retail destination. According to Mahboubi, rents on the iconic street are expected to reach $1,200 per foot by 2025. The activity is attracting investors when properties are available for sale—a rare occasion. In one example earlier this year, George Chamoun acquired a nearly 5,000-square-foot storefront in the Beverly Hills Golden Triangle for $8.2 million. Chamoun is an owner-occupier and plans to house his jewelry business in the store. JLL’s Houman Mahboubi and Klein represented Chamoun and the seller, Ascot Chang USA, in the deal.
This isn’t Mahboubi and Schillinger’s first record deal. The duo also brokered the sale of House of Bijan at 420 N. Rodeo in 2016. The parent company of Louis Vuitton purchased the building $122 million, or $19,405 a square foot, a record-breaking price tag. Previously, Chanel’s acquisition of 400 N. Rodeo for $13,217 a square foot was the highest price in the market.
Rodeo Drive is a hotspot in the Los Angeles metro, but the retail sector in the entire market is on fire. “There is a lot of pent-up demand among shoppers in Southern California, and we are expecting a robust Holiday shopping season,” Jamie Brooks, First VP at CBRE, told GlobeSt.com in an earlier interview about a holiday shopping report. CBRE forecasts that holiday spending will increase 8.4% this year to $800 billion, a new record. Southern California is expected to benefit from the surge in retail sales.