Popular activewear retailer Alo Yoga just plunked down $90 million for a headquarters building in Beverly Hills.
Alo spent$1,085 per square foot, for the 82,900-square-foot La Peer Building at 8942 Wilshire Boulevard, CoStar reported.
The company plans to move its business operations down the street from 9380 Wilshire Boulevard, where it leases its 57,000-square-foot headquarters space. The old headquarters site is home to the Alo Gym and a content studio.
Breevast U.S., the American offshoot of Dutch investment firm Breevast, was the seller of the three-story La Peer Building. Breevast bought the building in 2019 for $107.5 million. The sale to Alo marks a 16 percent discount from the previous sale price, but the transaction is still the second-pricest of the year in Beverly Hills.
The office market in the ritzy Los Angeles-area city has faced increasing office demand and limited construction, driving down the vacancy rate from 17 percent a year ago to 15 percent. The broader Los Angeles office market is unstable, but the purchase by Alo is the latest transaction in Beverly Hills to buck that trend.
Last year, Fashion Nova bought the 175,000-square-foot building nearby at 407 North Maple Drive from Tishman Speyer for $118 million, or $676 per square foot, for its headquarters.
In September, Kilroy Realty bought the 290,000-square-foot building at 345 North Maple Drive for $205 million, or $707 per square foot, making it one of the priciest deals of the year in the Los Angeles area. That same month, a Corinthia Hotels affiliate bought the office building at 9800 Wilshire Boulevard and an adjacent parking structure for $100 million.
“We’ve had a significant drought in investments for a while, but this deal is a sign we’re turning a corner,” Madison Partners founder and president Bob Safai, who represented Breevast in the deal, told the outlet. “Beverly Hills is always an attraction for high-end investors because they see it as safe in good and bad markets.”
La Peer Building has been vacant since 2022 when Paradigm Talent Agency left the property. Alo’s timeline for moving into the building has not been disclosed.
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