The land under the Beverly Hills flagship retailer of luxurious retailer Neiman Marcus has been offered to a New York investor because the house owners of the division retailer chain promote property to pay money owed.
Neiman Marcus, which has occupied the 9700 Wilshire Boulevard retailer because it opened in 1979, will proceed to serve clients there as a tenant.
“We made the strategic choice to promote the land beneath the Neiman Marcus Beverly Hills retailer and enter right into a long-term lease with the brand new proprietor,” mentioned a spokesperson for Saks World. “This opportunistic actual property transaction doesn’t affect our day-to-day operations. We stay dedicated to serving our loyal Beverly Hills clients.”
Saks World, the dad or mum firm of Saks Fifth Avenue, Neiman Marcus, Saks Off fifth and Bergdorf Goodman, offered the Beverly Hills Neiman Marcus web site for an undisclosed value.
The brand new proprietor of the property on the sting of town’s prestigious Golden Triangle is Ashkenazy Acquisition Corp., a personal actual property funding agency owned by Ben Ashkenazy.
Ashkenazy additionally owns the previous Barneys constructing on Wilshire Boulevard that’s now occupied by Saks Fifth Avenue.
“This strategic acquisition considerably expands Ashkenazy’s presence in Beverly Hills and reinforces the agency’s give attention to irreplaceable, best-in-class retail property situated in globally acknowledged luxurious corridors,” the corporate mentioned in a press release.
Executives at Saks World have signaled plans to shore up money by offloading shops, or elevating emergency financing.
It may additionally half with a stake in luxurious retail chain Bergdorf Goodman to assist repay money owed and reinvest in its core retail enterprise, actual property information supplier CoStar mentioned.
The corporate faces a $100-million debt fee deadline on the finish of December and is contemplating Chapter 11 chapter as a final resort, Bloomberg mentioned. The scramble comes a 12 months after Saks World bought Neiman Marcus in a $2.7-billion deal.
The Beverly Hills retail property market continues to be one of the crucial strong within the nation, mentioned actual property dealer Jay Luchs of Newmark. He was not concerned within the Neiman Marcus property sale, however has brokered gross sales and leases of luxurious shops in Southern California for greater than twenty years.
“That is most likely one of the best it’s ever been in Beverly Hills,” he mentioned, with “primarily nothing accessible” on Rodeo Drive for retailers seeking retailer area and demand climbing on close by streets akin to Wilshire Boulevard.
Some top-shelf manufacturers are making their shops bigger, and luxurious manufacturers, together with LVMH, Chanel, Hermes and Richemont, are shopping for their shops as an alternative of renting them, he mentioned.
“They don’t do this except they’re making an incredible amount of cash and wish to be there perpetually,” Luchs mentioned, “and so they understand that Los Angeles and Beverly Hills is an important marketplace for them.”
