A joint venture between Golden West Properties and Starpoint Properties paid $30.3 million to San Diego Promenade Investors to acquire the Adidas and Burn Fitness building at 1231-1233 Third Street Promenade in Santa Monica.
Adidas, which is moving to a smaller location on the Promenade, currently leases 20,000 square feet of the 30,000-square-foot building. Fitness studio Burn Fitness’ lease expires soon, according to a CBRE release announcing the deal.
Once that lease expires, the private partnership plans to subdivide the ground-floor retail and repurpose the building for creative office space.
CBRE’s Orbell Ovaness brokered the deal.
Golden West already owns the Santa Monica Medical Plaza nearby, as well as several shopping plazas in Beverly Hills, Marina del Rey, Encino and West Hollywood. Its partner, Starpoint Properties, focuses on developing multifamily and commercial properties, according to its website.
Repurposing existing buildings is happening all over Santa Monica. Seritage Growth Properties is carrying out a $50 million Sears project, slated to deliver creative offices and a beer garden.