Los Angeles – September 26, 2016 – CBRE Group, Inc. announced the sale of a retail property on Santa Monica’s 3rd Street Promenade, currently leased to luxury electric car company Tesla Motors, for approximately $15.6 million.
CBRE’s Timothy Bower, Ken McLeod and Tim Kuruzar represented the undisclosed seller and the buyer in this transaction. The buyer was a joint venture between KLM Equities and Harlington Realty LLC.
The transaction is one among only a few on 3rd Street Promenade, where property ownership tends to be long term and many buildings are generational holds. The street boasts dozens of international retail tenants adjacent to one another, presenting a significant barrier to entry to a market that attracts an estimated 40,000 people a day in foot traffic.
The 3,000 square-foot property at 1227 3rd Street Promenade with a bottom-floor store front is surrounded by other trendy retail, such as Adidas, Nordstrom and Tiffany & Co., and urban restaurants such as the Water Grill. The building, constructed in 1938, underwent a complete revamp in 2012 into Tesla’s state-of-the-art showroom.
The street is popular with affluent residents – the area boasts an average household income of $91,499 within a one-mile radius – as well as visiting tourists. Santa Monica attracts more than 7.3 million people annually from outside Los Angeles County.
The property sits close to the Metro Expo Line which connects Los Angeles’ Westside by rail with Downtown Los Angeles, Hollywood, the South Bay, Long Beach, Pasadena and the Valley. Its final stop is located just three blocks from the property.
“The property is perfectly situated in the epicenter of Southern California’s premier shopping destination,” said Kuruzar. “Santa Monica is experiencing a significant economic growth trend that is expected to continue in the years to come.”
Downtown Santa Monica has seen a wave of redevelopment - historic and functionally outdated buildings have been transformed, including a $50 million dollar restoration of the iconic City Hall building, a $55 million seven-acre redesign of Palisades Park and the $265 million renovation of the Santa Monica Place mall.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com
