Sales  ·  Retail

Sunset Strip Retail Property Sells for $30M

Asset spans 37,900 square feet and features Fred Segal flagship in West Hollywood, Calif.

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New York City-based investment firm Regal Ventures has acquired a fully leased retail property along the famed Sunset Strip in West Hollywood, Calif. 

The real estate company announced Monday that it bought the 37,900-square-foot asset at 8500 Sunset Boulevard, but declined to disclose the sale price or the name of the seller. However, a source familiar with the deal told Commercial Observer it closed for nearly $30 million, and property records show it was owned by CIM Group.

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The retail property is fully leased and features the flagship store for popular clothing brand Fred Segal. Other tenants include Kith apparel; a boutique boxing gym Rumble; the Bill Chait-branded Tesse restaurant; and health care company Tia. It’s at the base of the 190-unit AKA West Hollywood owned by Korman Communities and Brookfield Property Group, and it includes a 178-space parking garage.

Regal Ventures invests across multiple asset classes but narrowed its focus the past few years to retail in major metros around the country. The firm has acquired retail properties in Miami, Brooklyn and Manhattan the past three years. 

“Our analysis indicates that retail is positioned to be a big winner through the next cycle as it will continue to benefit from strong market fundamentals,” Alex Smith, Regal Ventures’ co-founder and managing partner, said in a statement. “While tenant demand remains strong, supply will remain constrained as new construction remains low due to higher interest rates and building costs.”

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.