Invesco partners with Seritage in former Sears building creative office conversion

Invesco paid $50M for an equal stake in the planned mixed-use space in Downtown Santa Monica

Los Angeles /
Mar.March 22, 2018 04:05 PM
A rendering of the Mark 302 at 302 Colorado Street in Santa Monica, with Seritage CEO Benjamin Schall (Credit: Neoscape, Seritage Growth Properties)

Seritage Growth Properties is partnering with Invesco Real Estate as it converts the former Sears department store in Downtown Santa Monica into a creative office space.

A New York-based real estate investment trust, Seritage sold half its stake in the 100,000-square-foot building, entering into a joint venture with Atlanta-based Invesco, a real estate investment firm. Invesco paid $50 million, the two companies said in a statement announcing the deal on Thursday. 

Seritage will use part of the proceeds to pay off the mortgage on the property, which is valued at $145 million. The rest will go toward the $50 million planned conversion.

The landmarked Art Deco building, at 302 Colorado Avenue, will reopen as a four-story mixed-use creative office space called the Mark 302. 

It will include a beer garden and a rooftop garden and leisure space meant to appeal to tenants looking to get in on the burgeoning tech scene in Santa Monica. It sits a few blocks from the Santa Monica Pier, across Colorado Avenue from the high-end Santa Monica Place shopping mall, and a block from the last stop on the Metro Expo Line.

Seritage calls the conversion the “first phase of the redevelopment of the site,” and hinted at a future development on parking lot space there.

The Sears store opened there in 1947 and was landmarked in 2004. Seritage first proposed a redevelopment in 2016. The store shuttered a year ago.

Seritage controls 224 wholly-owned Sears and Kmart stores and 31 stores as joint ventures with firms including General Growth Properties, Simon Property Group, and Macerich.

Invesco is no stranger to Santa Monica, nor the tech industry. In November 2016, it sold an office building at 2700 Colorado Avenue for $368 million to Larry Ellison’s Oracle company, which penciled out to $1,165 per square foot, making it the most expensive office deal in the city at the time. 

That same year it inked a deal with Google for a portion of its Hercules campus in nearby Playa Vista, including the “Spruce Goose Hangar” where Howard Hughes built his gigantic wooden airplane in the 1940s.


Related Articles

arrow_forward_ios
City Tower at 333 City Boulevard West (KBS Capital Markets Group)
Opal Holdings pays $150M for Orange County office tower
Opal Holdings pays $150M for Orange County office tower
Redcar Properties CEO Jim Jacobsen with Dynasty Center (Google Maps, Industry Partners)
Redcar buys Dynasty shopping center in Chinatown
Redcar buys Dynasty shopping center in Chinatown
Sandstone Properties CEO Eri Kroh with a rendering of the project (Sandstone, The Jeff Hotel)
Culver City approves `The Jeff,’ Sandstone Properties’ 175-unit hotel
Culver City approves `The Jeff,’ Sandstone Properties’ 175-unit hotel
Apple delays return to office by a month
Apple delays return to office by a month
Apple delays return to office by a month
Stos Partners Principal CJ Stos and 159 N San Antonio Avenue 
Stos Partners pays $22M for Pomona warehouse
Stos Partners pays $22M for Pomona warehouse
The assistance is available to theaters with fewer than 99 seats (Getty)
California lawmakers set aside $50M in massive state budget to aid small theaters
California lawmakers set aside $50M in massive state budget to aid small theaters
Elon Musk and 19640 Cajon Boulevard (Alere Property Group, Getty)
Tesla drives into San Bernardino with big warehouse deal
Tesla drives into San Bernardino with big warehouse deal
Goodman Group CEO Gregory Goodman with renderings of the facility (Goodman, Relativity Space)
Goodman signs spaceflight startup to 1.3M-sf former Boeing site
Goodman signs spaceflight startup to 1.3M-sf former Boeing site
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...