Rodeo Drive Retail Property Fetches Over $400 Million

A Rodeo Drive property that is leased to Tom Ford, Moncler and Balenciaga stores has sold for over $400 million, sources with knowledge of the deal told The Real Deal.

The transaction, which amounts to $14,228 per square foot, is believed to be a one-property record on the iconic street and the second-highest sale ever in Beverly Hills.

The seller was Ronan McNamee’s ECA Capital Limited, which purchased the 28,000-square-foot property at 338 North Rodeo Drive in 2007 for $81.5 million, less than $2,900 per square foot, according to property records. The identity of the buyer wasn’t immediately known.

Sitting on a double-wide lot, the building was purchased with its development rights in mind, one of the sources said.

Newmark’s Jay Luchs brokered the deal. Michael Shabani, who runs Los Angeles-based investment firm Crown Equity, was involved in the deal. Neither returned requests for comment.

McNamee, who wasn’t immediately reachable, refinanced the property for $160 million, or $5,691 per square foot, in 2019.

Rodeo Drive — where rents average $1,000 per square foot per year plus triple net — has notched some hefty retail investment sales prices in recent years.

Those include LVMH’s $245 million purchase of a 22,270-square-foot two-story double lot at 468 North Rodeo Drive (or $11,001 per square foot); hotelier Efrem Harkham’s $200 million sale of the 42,560-square-foot 360 North Rodeo Drive that housed his Luxe boutique hotel plus three high-end retail stores (or $4,699 per square foot); LVMH’s $110 million acquisition of the 6,200-square-foot property at 456 North Rodeo Drive (or $17,742 per square foot); and Shabani’s purchase of two storefronts spanning 11,600 square feet at 457-459 North Rodeo Drive for $112 million (or $10,500 per square foot).

In Beverly Hills, the 338 North Rodeo Drive deal is believed to mark the second-highest deal for a single property behind Nicholas and Christian Candy’s 2007 $500 million purchase of the former Robinson’s-May department store site.