UPDATED, April 21, 2022, 1:19 p.m.: Michael Shabani of L.A.-based Crown Equity has bought a retail building on Melrose Avenue in West Hollywood, The Real Deal has learned.
Shabani bought the 3,275-square-foot property from West Palm Beach-based Sterling Organization for $19.2 million, sources familiar with the deal told The Real Deal. Tim Kuruzar and Geoff Tranchina of JLL brokered the deal. Shabani declined to comment on the deal, and Sterling Organization did not immediately respond to a request for comment.
Sterling Organization, a Miami-based private equity firm, bought the building for $14.75 million in 2019 — around $4,500 per square foot, records show.
The building is currently leased to Casper, the e-commerce firm focused on mattresses and bedding. Casper reported revenues of $151.8 million in the second quarter of 2021, financial filings show, before it was bought by private equity firm Durational Capital for around $280 million.
The property at 8379 Melrose Avenue also includes a large billboard used by advertising and media company Big Outdoor, and six car parking spaces, according to marketing materials for the property.
At more than $5,800 a square foot for the building, the deal is one of the priciest retail deals to close during the pandemic.
In October, Shabani sold a 6,000-square-foot property on North Robertson Boulevard for about $2,500 per square foot.
Before the pandemic, his firm sold a 11,600-square-foot property on Rodeo Drive — L.A.’s most expensive and iconic retail strip — that it owned with Ascendent Capital Partners for $10,500 per square foot
Brokers have seen retail leases pick up along the West Hollywood strip of Melrose Avenue in recent months.
Over the last six months, 8428, 8500, 8507, 8585, 8607, and 8755 Melrose Avenue have all been leased, among other storefronts, according to brokers and street signs along the strip. Just off Melrose Avenue, 8483, 8478 and 8408 Melrose Place have also been leased in recent months.
This story has been updated to include the brokers on the deal.