PK Retail Holdings Inks 51SF Lease in DTLA for US Headquarters
South Korea-based retailer PK Retail Holdings signed 10-year lease for a new 51,692-square-foot mixed-use U.S. headquarters and retail complex at a historic property in Downtown Los Angeles in a deal worth $40 million, according to a source familiar with the deal.
PK, a subsidiary of Emart and Shinsegae Group, will occupy the first through third floors of the seven–story property at 712 South Olive Street by the end of 2019, according to a release from Cushman & Wakefield (CWK), which represented both the landlord and tenant in the deal.
Mike Condon Jr., Pete Collins, Kelli Snyder and Brianna Demus acted on behalf of the landlord Atlas Capital Group, and Matthew Fainchtein, Carter Magnin and James Chung represented PK Retail Holdings.
Beyond establishing their home base for North America, PK Retail Holdings will debut a new concept called PK Market on the ground and second floors of the building at 7th & Olive. PK Market will feature a reimagined retail food market with multiple highly curated food and beverage offerings on the premises.
“PK Market epitomizes a growing trend for tenants in Downtown LA who demand unique space that speaks to their brand and identity while capturing an opportunity for corporate offices as well as outward-facing business goals,” Condon said in a release. “The 7th & Olive location has proven to be second to none in attracting tenants to the confluence of South Park, the Historic Core and the Financial District and is uniquely situated to cater to both local residents and businesses alike.”
PK is the first tenant signed for in the 169,000-square foot mixed-use building with a rooftop penthouse available for an office tenant according to C&W.
“This demonstrates how Downtown LA is gaining ground on many of the Westside submarkets, tenants recognize that there’s an authenticity and energy here that matches the best of west Los Angeles,” Collins added in the statement. “The combination of a great asset and excellent sponsorship was attractive to PK Market and will give us momentum to lease the balance of the building.”
On the southeast corner of Seventh and Olive Streets, the 101-year-old Jewelry District property was originally built in 1917 as home to the Ville de Paris department store.