Fred Segal on Melrose Avenue has been an iconic fashion site since the 1960s, gathering cutting-edge designers in a low-slung building coated with ivy. Now that site has just sold for $43 million, the first time the 29,000-square-foot property has been on the market in four decades.
“We experienced incredible interest from all types of buyers – local to international and private capital to institutional,” said Ed Sachse, executive managing director for Kennedy Wilson’s brokerage based in Beverly Hills. He represented the buyer, real estate investor CormackHill of Vancouver, British Columbia, as well as the seller, 8100 Melrose Associates, which he described as a family that wished to focus on other business interests. The family bought the site from Fred Segal in a private deal about 15 years ago.
The high-end clothing retailer also has a site in Santa Monica and, since its acquisition by New York-based Sandow in 2012, has opened outposts at Los Angeles International Airport as well as in Tokyo and Yokohama, Japan. The Santa Monica Fred Segal will soon relocate to Playa Vista. The site it is vacating is slated to be replaced by a seven-story apartment building called 500 Broadway.
Sachse said the Melrose site’s new owner does not plan any big changes.
“Their interest is to really maintain the iconic retail nature of 8100 Melrose,” he said. “With the closure of Fred Segal in Santa Monica, I think that Fred Segal Melrose is here to service the community for high-fashion needs.”
A Sandow spokeswoman said the company would not comment on plans for the Melrose location.
Part of its attraction has been the strength of the local retail environment. Although Melrose Heights has experienced ups and downs, Sachse said rents have stabilized at about $5 or $6 a square foot on Melrose Avenue, where stores near Fred Segal offer luxury casual wear and high-end home goods.
Towers on Track
The proposed Palladium Residences has won one battle but could soon face another.
The Los Angeles City Council voted to approve the project, which would erect two 28-story towers with 730 units in Hollywood. But the AIDS Healthcare Foundation said it planned to sue to block construction, arguing the project is too big for the neighborhood and does not comply with zoning regulations.
“This is yet another flagrant example of the ‘pay to play’ culture infecting Los Angeles involving developers, the City Council, the Planning Department, and City Hall,” Michael Weinstein, president of the AIDS Healthcare Foundation, said in a statement.
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