West Hollywood retail buildings sell to partnership

LOS ANGELES, May 6, 2021 – JLL Capital Markets announced today that it has closed the sale of and arranged acquisition financing for two retail buildings totaling 18,838 square feet that are fully leased to three high-credit retailers in West Hollywood, California.

JLL marketed the property on behalf of the seller, ASB Real Estate Investments (ASB) on behalf of its Allegiance Real Estate Fund, a $7.4 billion core vehicle. Arc Capital Partners in partnership with Belay Investment Group acquired the assets. Additionally, working on behalf of the new owner, JLL arranged acquisition financing.

The sale included the 8,838-square-foot building at 308-314 North Robertson Blvd. and the 10,000-square-foot building at 8783-8788 Beverly Blvd., which are positioned in the heart of West Hollywood’s primary retail corridor. This high-traffic location exposes the portfolio to approximately 137,000 vehicles per day. Additionally, the buildings are proximate to the Pacific Design Center and near the affluent Hollywood Hills and Beverly Hills neighborhoods, where home prices exceed $2.6 million.

ASB, which acquired the assets in 2013, renovated and released North Robertson building to Knoll Home Design and Flexform Furniture. Leica Camera, Inc. occupies the Beverly property and uses it as their flagship retail store and photography gallery. The assets also come with 38 dedicated surface parking lots, a rare amenity in this densely populated area of West Hollywood.

“The Beverly Robertson properties reflect the well-located, street front retail that remains highly attractive in mixed-use neighborhoods,” said Quincy Allen, Co-founder and Managing Partner of Arc Capital Partners. “These two buildings are flagship locations in Los Angeles for the three retailers and showed the resiliency of the properties through the Covid-19 pandemic with significant long-term value.”

Belay’s Senior Vice President of Investment, Jake Loughridge, added, “This acquisition fits squarely into our partnerships’ targeted strategy of acquiring unique assets in well located, infill locations.  We were able to capitalize on the dislocation in the markets due to the Covid-19 pandemic and we’re excited to have acquired another great asset; our second with Arc this calendar year.”

ASB Senior Vice President Aaron Duncan said, “The sale fits with ASB’s ongoing strategy to selectively reduce retail and office assets and redeploy capital into industrial investments and workforce housing as we move into the next real estate upcycle.”  

The JLL Capital Markets team that represented the seller was led by Managing Director Bryan Ley and and Directors Tony Ensbury and Tim Kuruzar.

The JLL Debt Placement team representing the new owner included Managing Director Jeff Sause and Director Spencer Richley.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

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