UPDATED JAN. 9 at 11:00 a.m.:
Regal Ventures has bought 37,900 square feet of ground-floor shops and a 178-stall parking garage on the Sunset Strip in West Hollywood for $29.6 million.
The New York investor bought the retail property and garage at 8500 Sunset Boulevard, CoStar News reported. The seller was an affiliate of CIM Group, based in Mid-Wilshire.
The shops and parking are below the 190-unit complex known as AKA West Hollywood, which CIM sold in 2017 to Korman Communities and Brookfield Property Group for an undisclosed price, though sources valued the properties at around $250 million.
The city sued the owners the following year over short-term rentals at the condo complex converted into an extended-stay hotel. It’s now known as The Apartment Residences at AKA. The units were not part of the sale to Regal Ventures.
The purchase by Regal Ventures of the property’s curbside shops includes a 22,000-square-foot flagship location for Fred Segal, a locally based upscale apparel brand. Other tenants in the 100-percent occupied storefronts include Kith, a New York-based apparel and footwear retailer; Rumble, a boxing fitness chain; Tesse, a Bill Chait-branded restaurant and wine lounge; and Tia, a female-focused healthcare firm.
The deal is the latest sign of demand along the 1.7-mile Sunset Strip, a Los Angeles-area hotspot for nightlife, shopping, hotels and restaurants.
Celebrity Kim Kardashian is opening a store down the street at 8569 West Sunset Boulevard.
A spherical glass digital billboard has been proposed at 8410 Sunset Boulevard, next to the Best Western hotel.
The West Hollywood retail market has an average asking rent of $68.59 per square foot, well above the greater Los Angeles average of $36.34 per square foot, according to CoStar. The area’s average vacancy is 8.3 percent, higher than the overall market’s average of 5.3 percent.
Correction: Previous story incorrectly indicated the extended-stay hotel was part of the purchase.
— Dana Bartholomew
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