Press Release

CBRE ANNOUNCES THE SALE OF ADIDAS & BURN FITNESS BUILDING IN SANTA MONICA, CA FOR $30.3 MILLION

11 1 2018

$name

CBRE announced the sale of the Adidas and Burn Fitness Building on Santa Monica’s prominent Third Street Promenade for $30.3 million to a partnership of two private Beverly Hills investors.
CBRE’s retail expert Orbell Ovaness represented the seller, San Diego Promenade Investors, LLC, a private family office. Orbell also negotiated seller financing for the transaction.

The asset features high-street retail with a value-add component. It is situated in one of the busiest pedestrian districts in Southern California, with a rare 70’ frontage. This coastal location attracted more than 500 executed confidentiality agreements from interested national and international investors through CBRE’s marketing platform.

“This was a challenging endeavor; Adidas is set to move into the 1300 block of Third Street Promenade while Burn Fitness has a short term remaining on its original lease, with no option to extend,” said Ovaness.” Ultimately, I found the perfect buyer attracted to a rare chance to create value through lease-up and the reconfiguration of the building, making this an opportune mixed-use investment.”

The buyers, Golden West Properties and Starpoint Properties, were also represented by Ovaness. The local private partnership is planning to subdivide the ground-floor retail upon Adidas’s departure and convert the balance of the building into creative office with a roof-top terrace.

With more than 15 million visitors a year, Third Street Promenade is one of the most successful pedestrian shopping centers. Together with Santa Monica Place, its estimated to attract more than $685 million of consumer spending annually, according to CBRE research. The extremely high barriers to entry mark the city of Santa Monica for its notorious anti-development reputation and complex entitlement process, making it nearly impossible to add new supply to the market.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.