The buyer behind the record-breaking real estate transaction on Rodeo Drive in Beverly Hills has been revealed.
French luxury goods fashion houseHermès plunked down an astounding $400 million for some prime real estate on the iconic strip, theWall Street Journalreported.
There’s been speculation for months as to who might be behind the massive property grab on the famed Beverly Hills street after it was announced the adjoined properties were sold last summer.
The purchase is the most expensive retail real estate acquisition on the famed drive in more than two decades, according to the data tracked by real estate firmCBRE.
The fashion house’snew location at 338 N. Rodeo Drive has nearly 25,000 square feet, which is twice as big as its current store just a few doors down. Hermes bought its current storefront 15 years ago.
The new location is currently home to three other fashion stores: Tom Ford, Balenciaga, and Moncler.
It’s currently unclear what Hermes will do with the properties as the current tenants’ leases aren’t up for a few more years. While many retailers have shrunken their U.S. footprint, luxury retailers have done the opposite, expanding their flagships, per the WSJ report.
“What you see now on Rodeo Drive is not only a commitment by the luxury brands that are able to buy their real estate, but you’re seeing the buildings get much bigger,” said Jay Luchs, a vice chairman at Newmark who brokered the Rodeo Drive transaction.
CBRE senior vice president Houman Mahboubi said there is now currently only one vacant storefront available for long-term lease on Rodeo Drive, pointing out that competition forproperties in Beverly Hillshave increased since the pandemic.
“There just isn’t any inventory,” Mahboubi said. “The high demand from luxury brands that are seeking flagship locations are driving values up and creating pricing power for landlords.”
Source: California Post – Breaking California News, Photos & Videos
