Another boutique is leaving Robertson Boulevard’s trendy stretch, making way for yet one more national tenant.
In the last year, a handful of small businesses mostly clothing stores have sold their leases to big chains and left the street, which has become a haven for starlets and paparazzi alike.
Susanne Zenker, owner of women’s boutique Horn, has sold back her lease at 140 S. Robertson Blvd. to landlord Drysdale Investments, the entity of a Los Angeles-based real estate investor. And in a deal that closed in mid-October, Drysdale leased out the 1,200-square-foot space to Luxottica Group S.p.A. for 10 years.
Luxottica owns several optical store chains, including Sunglass Hut, and will open a retail outlet at the Robertson location. For Zenker, it was time to leave the street after seeing one boutique after another between Beverly Boulevard and Burton Way be replaced by larger chains.
“I’m happy. I got a good offer for my lease so that was an incentive and the street has changed. It is not as exclusive as a neighborhood as it used to be: It is more corporate and it is not high-end,” said Zenker, who would not discuss the terms of the lease buyout.
Matthew May of May Realty Advisors said that Robertson has now become a street where national companies go to launch brands.
“When you are trying to launch a brand and create image with it, Robertson absolutely works,” said May, who represented the landlord in the deal. “Robertson and Rodeo Drive are both attracting high level of disposable income but they are different. You don’t see paparazzi on Rodeo. On Robertson you create more of local and hip buzz.”
Luxottica may choose to garner some hip buzz with the space, where it could open a branch of its new high-end Ilori optical chain. An Ilori branch has already been opened in New York City and another is slated for Rodeo.
“I think any of the brands will do great business either way,” said Michael Townsend, principal of Townsend and Associates Inc., who represented Luxottica.
Terms of the lease deal were not disclosed but industry sources said it was a market rate deal. In the trendy section of the boulevard, rental rates are in the $20-$25 range, per square foot per month.
The new tenant will move into the space in February and a store will likely open there by June. Zenker said that she will reopen Horn in a new location by next fall.
Law Firm Lease
Brookfield Properties Corp. has signed a handful of new tenants in recent months at its 50-story, Class A office tower, Figueroa at Wilshire.
New York-based Brookfield has owned the building at 601 S. Figueroa St. for just over a year since acquiring the tower when it bought Trizec Properties for $4.8 billion.
One of the new tenants is law firm Goodwin Procter LLP, which has signed an 11-year lease deal at the building. Real estate industry experts say the deal is valued at over $11 million.
The law firm, which has an office in Century City’s MGM Tower, will occupy the building’s entire 41st floor, 20,428 square feet. Goodwin Procter has had a temporary office on the 40th floor of the building since June.
Lew Feldman, a real estate attorney with Goodwin Procter, said that the firm is opening the office, which will house at least 17 attorneys, because it wanted to make commuting easier for employees who live near downtown in places like Pasadena.
The firm’s space is currently under construction and it is expected to be completed by early December, with the firm moving in by early January. Feldman said the new space will have a contemporary feel.
The per-square-foot rental rate was not disclosed, but market rate rents are in the $22-$28 range annually.
Tony Manos, senior vice president and head of the Southern California region for Brookfield, said that the deal with the law firm is indicative of a burgeoning trend.
“I think it says something very important: That some of the very high-end firms are keeping their Westside presence but are really looking to expand downtown,” Manos said.
John Barganski of Brookfield, and Carl Muhlstein and Anthony Gatti of Cushman & Wakefield Inc. represented the landlord. The law firm was represented by Mark McCaslin of McCaslin Co. and Lisa St. John and Peter Best of Jones Lang LaSalle Inc.
Architecture Abounds
Architectural firm Harley Ellis Devereaux Corp. is also moving into the Brookfield building, and has signed a 13-year lease that industry sources said is valued at over $17.5 million.
The Detroit-based company signed the lease in the third quarter and will move into the space early next year.
The firm has leased about 35,000 square feet at the building and will occupy the fourth floor and part of the fifth, Manos said. The architecture firm is relocating from the Mid-Wilshire area.
The building was 56 percent leased about 18 months ago. With a slate of recent leases, it is now 68 percent occupied. Other architecture firms, including RTKL Associates Inc., which has renewed space for its downtown office, have committed to the area, Manos said.
“The rents are more competitive than West L.A.,” said Muhlstein of Cushman & Wakefield, who represented the landlord in the deal. “There is now a wider variety of housing and the role of mass transit is really well-suited to the architectural firm rank and file.”
Terence Lawrence of Spectrum Strategies represented Harley Ellis. Barganski and Gatti also represented the landlord.
Staff reporter Daniel Miller can be reached at
[email protected]
or (323) 549-5225, ext. 263.
