High Street Retail in West Hollywood Trades for $21M

8532 Melrose Ave. Image courtesy of Kidder Mathews

An investor has jumped on the rare chance of owning a storefront on West Hollywood’s Melrose Avenue, in suburban Los Angeles. Locally based Blatteis & Schnur purchased the West Hollywood property for $20.6 million from an undisclosed New York-based investor. Blatteis & Schnur was advised by Imperial Capital, while Kidder Mathews’ Tanel Harunzade, Darrell Levonian and Brittney McCarthy represented the seller.

READ ALSO: West Hollywood Retail Asset Commands $23M

The 4,946-square-foot suburban Los Angeles retail property is located at 8532 Melrose Ave. in one of the busiest commercial corridors of West Hollywood, between San Vicente and La Cienega boulevards. The retail space is currently home to Lululemon and Joe & The Juice and has neighboring retailers like Restoration Hardware, Rag & Bone and AllSaints.

“It’s a very rare opportunity to purchase real estate in this market, especially west of Los Angeles on Melrose Avenue,” Levonian told CPE. “It’s near the Pacific Design Center and a lot of high-end retailers.”

Levonian also told CPE that the property has the possibility to increase in size as the floor area ratio that’s allowed for the storefront is higher than the existing structure. The property commands a more than $200 per foot annual rent and the cost per foot of improvements for this sale leads the market, Levonian told CPE. Levonian added that Kidder Mathews was involved in the sale of the property back in July 2015.

High Street Retail

A few blocks north in the West Hollywood market, another storefront was sold for $22.5 million. CBRE arranged the sale of the 30,100-square-foot retail property at 8500 Santa Monica Blvd., on the corner of Santa Monica and La Cienega boulevards. The area is one of Los Angeles’ busiest intersections.