Beverly Palm Plaza, a 11,500-square-foot retail center at the corner of Olympic Boulevard and Palm Drive in Beverly Hills, has sold for $12.5 million.

The neighborhood retail center was fully leased at the time of closing, home to tenants including Supercuts and Domino’s Pizza, in addition to local stores such as Sushi Sasabune, Bodhi Thai, Crazy Fish, Traveling Tikes and Zeglio Custom Clothier.

Kennedy Wilson Brokerage, a division of Kennedy-Wilson Properties Ltd., represented the seller, DSC America Inc., in the deal.

The property was marketed as a generational trophy asset in a high barrier to entry market. It was purchased by a local investor who plans to operate the asset as a leased investment.

The Beverly Palm Plaza traded at $1,088 per square foot,

“Beverly Palm Plaza is an extremely attractive asset from an investor perspective for several reasons,” Ed Sachse, president at Kennedy Wilson Brokerage, said.

“There is a straightforward value-add component as below-market leases come up for renewal, long-term redevelopment potential, and its location in the city of Beverly Hills allow the buyer and seller to avoid ULA transfer tax,” he added

Measure ULA, enacted April 1 of last year, is a one-time real estate tax on properties valued at or above $5 million.

The tax only applies to properties within Los Angeles city proper, thus, this sale was exempt.

Sachse represented the seller, along with Kennedy Wilson Brokerage’s assistant vice presidents Kyle Fishburn and Jack Nathan.

Retail sales in Beverly Hills are infrequent and, according to CoStar data, only four properties traded hands last year in
the city.