Luxury consignment brand TheRealReal is latest to bet on West Adams

Lion Real Estate Group and Borman Group developed the office conversion project

May.May 29, 2019 11:15 AM
3317-3325 Exposition Place and RealReal CEO Julie Wainwright (Credit: Google Maps)
3317-3325 Exposition Place and RealReal CEO Julie Wainwright (Credit: Google Maps)

A luxury consignment brand that sells used clothing and other goods has turned to a recently built office project in West Adams for its headquarters.

TheRealReal inked a deal to fully occupy a 29,690-square-foot office building in West Adams, the company announced Wednesday. The company, which is mostly online but has a few retail locations, is the latest to sign on to the revitalizing neighborhood. It joins Sweetgreen, which is moving its own headquarters there, and prolific developer CIM Group.

A joint venture between Lion Real Estate Group and the Borman Group developed the office conversion project, located at 3317-3325 Exposition Place near the Metro Expo/Crenshaw station.

The property includes two connected buildings — one two-story building and another smaller, one-story building. Exposed steel beams, an open floor layout and oversized skylights give way to an industrial style.

Marketing materials reveal rent at the property hover around $3.75 per month, valuing TheRealReal’s lease at about $1.3 million per year.

TheRealReal plans to relocate from its office in Century City by September.

Brad Feld, Chris Beck and Alex Bergeson at Newmark Knight Frank represented the landlords. Jennifer Frisk and Shannon Aja, also at Newmark, represented the tenant.

Lion Real Estate, led by Jeff Weller and Mory Barak, focuses on value-add acquisitions including opportunistic multifamily and creative offices properties in Southern California and Nashville. Its joint venture partner, Borman Group, is led by Mark Borman and focuses on adaptive reuse projects. Many of its projects are based in the Arts District.

It’s not the first time both companies have worked together. In 2016, they sold Hyperloop One’s four-building campus in the Arts District to Tishman Speyer for roughly $25 million.

Investors have also been active in West Adams, a designated Opportunity Zone. Last week, The Real Deal reported that popular salad chain Sweetgreen will be moving its headquarters from Culver City to another office conversion project, also on Exposition Place.

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