Golden West Properties and Starpoint Properties paid $30.3 million for the three-story, 30,000-square-foot Adidas and Burn Fitness building at 1231-1233 Third Street Promenade in Santa Monica.
CBRE broker Orbell Ovaness represented both the buyer and the seller, San Diego Promenade Investors, in the transaction.
The building currently is all retail, but the new owners plan to subdivide the ground-floor retail upon Adidas’s departure and change the remaining balance to creative office space with a rooftop terrace.
Adidas currently occupies 20,000 square feet of the property, but is downsizing to about 8,000 square feet within the same area.
“They’re shrinking it down because of the online presence,” Ovaness said. “They don’t need that big of a footprint.”
Burn Fitness currently occupies space in the building on a short-term lease with no options, Ovaness said.
Real estate reporter Ciaran McEvoy can be reached at firstname.lastname@example.org