“The global appeal of ’s Third Street Promenade and the cachet associated with Cupertino tech giant Apple Inc. has made for another jaw-dropping real estate deal,” Jeff Vertun reports for L.A. Commercial Real Estate Advantage. “Two years after the glass-clad Apple store on the promenade sold for what was considered an eye-popping $60 million, it has sold again for even more. Bridgton Realty, a private family real estate business in New York, late last month purchased it for $100 million.”
“That means the 17,550-square-foot retail box sold for about $5,700 a foot, a record for a retail property in West Los Angeles,” Vertun reports. “Just three other retail properties in the county – all on tony Rodeo Drive in Beverly Hills – have sold for a higher price per foot. The one-story built-to-suit building at 1415 Third Street Promenade, constructed in late 2012 on the site of what used to be a three-story Borders Books & Music store, has stone-paneled side walls, a glass façade and a 34-foot-high glass ceiling. The last sale of the site came in July 2012, when the Apple store was under construction. The buyer then was denim manufacturer Jordache Enterprises Inc.”
“The latest sale of the Apple site is the second time it has traded in four years, during which it has appreciated by more than 280 percent,” Vertun reports. “Jordache purchased the site from a partnership of Century City retail real estate firm Blatteis & Schnur Inc. and ASB Capital Management of Bethesda, Md. The partners originally acquired the building in 2010 for $26 million when it was still a Borders.”
“Jay Luchs, an executive vice president in the Century City office of Newmark Grubb Knight Frank, said that even though Apple’s retail building is new and situated in a premier location, much of the property’s value comes from its sought-after tenant,” Vertun reports. “‘The sale says more about Apple than it does about the promenade,’ he said. ‘I doubt if there was the same size space next door for sale it would get close to that kind of price. The buyer gets bragging rights to have such a tenant in its portfolio.'”
Read more in the full article here.
MacDailyNews Take:
I give [Apple] two years before they’re turning out the lights on a very painful and expensive mistake. – David Goldstein, Channel Marketing Corp. President, May 21, 2001
[Attribution: Cult of Mac. Thanks to MacDailyNews Reader “Brawndo Drinker” for the heads up.]
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Apple Retail Stores hit 10th anniversary (with video of Steve Jobs’ tour of 1st store) – May 18, 2011
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How Apple’s Steve Jobs is revolutionizing Manhattan retail – May 08, 2007
Fortune: Apple Inc. is America’s best retailer – March 08, 2007
How Apple Retail Stores beat Best Buy, Neiman Marcus, and Tiffany – December 19, 2006
your take has nothing to do with the story at hand.
MDN, why not do a follow up on that Goldstein idiot. You know, like where he works or whom he works for.
There are far too many rocks to overturn in order to find him.
So do they own the building apple built or just the land underneath it?
The article says it was “built-to-suit”; in other words, Apple signed the lease for the property, and the landlord promised to demolish the existing structure and build a new one according to tennant’s (Apple’s) specification. The building and the land is still owned by the property owners, Apple is just a tenant, paying monthly rent for the use of it. When 10-year lease expires, Apple can choose to leave the building, and the owner can do whatever they want with it afterwards.
Ask yourself these questions…
1. Would we be talking about this building if it were not for Apple retail stores being a success rather than “a very expensive mistake”?
2. Would this building be of less valuable if it were not for Apple retail stores being a success rather than “a very expensive mistake”?
When you answer these questions you will find it has EVERYTHING to do with MDN’s take.
David’s quote never gets old!
I hope there’s a nice space across the street for M¢ to open up one of their museum stores! That is, after they finish their 5th Avenue museum store.
‘The one-story built-to-suit’ storey.
I’ve identified the mysterious smell! It’s the smell of money changing hands!
@silverwarlock Before I read your comment I did a (very quick iPhone) search on the web for David Goldstein and Channel Marketing Corp. No lights. 🙂
He is probably living the life of Aqualung.
“Snot is running down his nose –“
eyeing little girls with bad intent
What could Apple be paying for this space to allow someone to spend that kind of money to take over ownership of the property. I guess the new owner will be taking a loss on the property while the current lease is in effect just so they can claim Apple as a client.
Santa Monica is in LA County but is NOT Los Angeles. Same is true of Beverly Hills- so much for comparison to West LA property. Venice is LA, Santa Monica is not.
Santa Monica real estate has been rocketing up for quite some time and the area is becoming known as a growing hotspot for software development. Santa Monica real estate is not very tied to the US economy and is in a world all of it’s own.
Posts are great! Thanks for the author