An unnamed buyer purchased the property at 360 N. Rodeo Drive from the Harkham family. Current tenants include Rolex, Patek Philippe and Ferrari. It was also the former home to boutique hotel Luxe Rodeo Drive, which shuttered more than a year ago.
“They bought a great piece of real estate. It’s the best luxury street in the world,” Newmark Group Inc.’s Jay Luchs, who represented the buyer, said.
Jones Lang LaSalle Inc.’s Marc Schillinger, Houman Mahboubi, Geoff Tranchina, John Strauss, Tony Muscio and James Stockdale represented the seller in the transaction.
“We were hired as advisers to explore all scenarios, sale, recapitalization and holding with new leasing and financing in place,” Schillinger said in a statement. “Ultimately, the buyer demand was so compelling that the best outcome was a sale.”
Luchs said demand for Rodeo Drive is high, and it is incredibly difficult to find for-sale properties on the street.
“Rodeo Drive is nearly fully leased for the first time to luxury users that will be there for a long time,” he said. “There’s limited availability at this time. Many brands have bought the buildings where in the past brands have leased buildings. They don’t want to leave and are invested in the street.”
Mahboubi said in a statement that he expected the area would receive $1,200-per-square-foot rents by 2025.
Luchs added that more companies want bigger spaces and see Rodeo Drive as an important flagship location for their brands. Lots of brands, Luchs added, are spending money on updating their stores, indicating a commitment to staying there.
While the $200 million represents a record sale for the block, it is not a record sale price for all of Rodeo Drive. That distinction, according to JLL, belongs to the old Brooks Brothers store, which in 2018 sold for $245 million. LVMH Moet Hennessy Louis Vuitton purchased the property. LVMH’s brands include Marc Jacobs, Fendi, Christian Dior, Sephora and Dom Perignon.
LVMH has acquired a large number of properties on the iconic street over the past several years. In 2018, the company also purchased a property at 456 N. Rodeo Drive from Sterling Organization. In 2016, LVMH purchased a 6,000-square-foot building from a trust and Dominium Management Corp. for $122 million at 420 N. Rodeo Drive.
LVMH plans to build a hotel to complement its stores. It has filed plans for a 115-room property on the corner of Rodeo Drive and South Santa Monica Boulevard.
