Kurt Rappaport delves into commercial with $40M buy on Canon Drive

The longtime resi broker will renovate 7 storefronts in Beverly Hills

Los Angeles /
Oct.October 03, 2018 03:00 PM
Kurt Rappaport and the property

Kurt Rappaport has paid about $40 million to acquire 23,000 square feet of retail space in Beverly Hills, the first major commercial venture for the longtime residential broker, The Real Deal has learned.

Rappaport, co-founder of luxury brokerage Westside Estate Agency, acquired seven storefronts on Canon Drive, home to prominent high-end residential brokerages and upscale restaurants, in an off-market deal that closed Friday.

An unidentified doctor, acting behind an entity named Canon Ball LLC, sold the properties, which include 448 – 460 N. Canon Drive, listing broker Jay Luchs said. The entity purchased the parcels from the estate of the late real estate mogul Fred Sands just two years ago, property records show.

For Rappaport, the deal represents a shift from his bread and butter — high-end residential homes.

Earlier this year, he broke Los Angeles County records when he sold his own seven-bedroom home in Malibu’s Carbon Beach for $110 million to billionaire Daryl Katz. Rappaport also acquired one of his own listings, the Brentwood home of former Viacom executive Frank Biondi Jr., for $16 million in July. In the past, he’s sold homes to Tom Cruise and Tinder co-founder Sean Rad.

“There’s a lot more speculation with residential,” Rappaport said. In commercial, “values just continue to go up.”

His plans for the Canon Drive property include renovating the buildings to their “original 1930s Beverly Hills feel.” That means updating the property’s facade, tearing down walls and “making the spaces more functional to today’s tenant,” he said. There will be retail on the first floor and office space on the second, he added.

Rappaport, who said he’s “actively looking” for more commercial opportunities, isn’t the only broker working both ends of the real estate spectrum.

In 2016, Luchs, a Newmark Knight Frank commercial vice chairman who brokered Rappaport’s recent deal, expanded into residential real estate with his partner Steven Schaefer. Collectively known as Newmark Residential, the two recently sold a 12,500-square-foot mansion in Beverly Hills to Gary Gilbert, co-owner of the Cleveland Cavaliers.


Related Articles

arrow_forward_ios
The Sherman Oaks Galleria (Marriott)
Action: Regal Cinemas inks deal at Sherman Oaks Galleria
Action: Regal Cinemas inks deal at Sherman Oaks Galleria
Photo Illustration of California Governor Gavin Newsom (Getty)
State approves $100M to boost marijuana retailers
State approves $100M to boost marijuana retailers
Renderings of One Beverly Hills and Beny Alagem. (One Beverly Hills, Getty)
Beny Alagem’s $2B Beverly Hills project gets go-ahead
Beny Alagem’s $2B Beverly Hills project gets go-ahead
Sumner Redstone (Getty) with 31 Beverly Park Terrace (Redfin)
Sumner Redstone’s Beverly Park estate flies off market for $27M
Sumner Redstone’s Beverly Park estate flies off market for $27M
(Getty, Immersive Van Gogh, iStock)
Former Amoeba Records building, facing demo, will host Immersive Van Gogh exhibit
Former Amoeba Records building, facing demo, will host Immersive Van Gogh exhibit
Michael Nourmand (Facebook via Nourmand & Associates)
Compass tries to recruit brokerage owner Michael Nourmand
Compass tries to recruit brokerage owner Michael Nourmand
Braemar Hotels & Resorts Chairman Monty Bennett with Mr. C Beverly Hills. (Ashford, Mr. C)
Mr. C Beverly Hills sells to Monty Bennett’s Braemar Hotels
Mr. C Beverly Hills sells to Monty Bennett’s Braemar Hotels
AMC CEO Adam Aron (Getty, Twitter via Aron)
Rolling: AMC looks to lease ArcLight, Pacific Theaters spaces
Rolling: AMC looks to lease ArcLight, Pacific Theaters spaces
arrow_forward_ios

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

Loading...