Tova Capital, a Westwood-based real estate investment and development firm, purchased a 7,500 square-foot, standalone retail building in downtown Santa Monica for $5.5 million in partnership with Shopton Capital.

As Santa Monica makes efforts to recover from a retail downturn, Tova Founder and Chief Executive Ron Harari said now is the time to invest in the area, pointing to positive signals with new leases from Fogo de Chão, Din Tai Fung and Google.

Located at 801-805 Wilshire Blvd., the retail building has on-site parking and sees about 50,000 drivers pass by on a daily basis, according to Tova Capital.

“The ability to acquire a free-standing building with surface parking in downtown Santa Monica is rare, especially at such a highly visible signalized corner and at a historically low land basis,” Harari said in a statement. “While many investors sit on the sidelines as Santa Monica recovers, we are excited to transact on quality real estate at a price that would have been unthinkable just a few years ago.”

Harari pointed to the 2021 purchase of a similar lot just a few blocks down at 601 Wilshire Blvd. for $12.5 million as a comparison.

Filling the storefronts

Currently, Commercial Bank of California occupies 40% of the leasing space, with the remaining 60% vacant.

Through a series of upgrades and renovations, Tova plans to change that. This includes a new storefront, revamped exterior lighting and changes to the paint and façade. Harari estimated improvements will take about six months to complete, adding that he expects the building to be fully leased within the first six months of ownership.

As a free-standing retail structure, “ease of accessibility” and “enhanced visibility” add value to the property, Harari said. It also allows tenants more creative freedom.

“The prominent frontage and unique building type provide tenants a blank canvas to establish their brand identity – much different than being at a base of a multifamily complex,” Harari said.