Chanel has sold 27 Old Bond Street, comprising an office block occupied by the luxury fashion house and an Alexander McQueen retail showroom, for £140 million, or a sub-3% yield.

A private North American investor, advised by Michael Elliott, has bought the 20,965-square-foot block. The showroom is let to Alexander McQueen for another 9.5 years, with the upper floor offices let to Chanel.

The building is understood to have been under offer to Brookfield for a period last year at closer to £145 million.

Wilson McHardy is understood to have advised Chanel.

House of Chanel bought it from Avestus Capital Partners for £50 million in 2010.

According to Savills' latest figures, 2023 has started slowly in the West End in a continuation of the fourth quarter's subdued activity. Only two transactions have taken place in January with a combined volume of approximately £165 million. Over the past five years, January has witnessed average volumes of £493 million, spread across eight transactions, it adds.

The sale of 27 Old Bond Street, however, represents the enduring appeal of one of the West End’s most prestigious addresses particularly in the private investor market.

CoStar News reported in November on how a number of rare opportunities to buy on Bond Street had come to market at sub-3% yields, evidence of the street's appeal to investors irrespective of wider economic trends.

In the second large transaction recently, RBS Pension Fund sold the freehold interest in 35 Great Smith Street, SW1, to a private Swiss investor for £25 million, reflecting 4.79% and £785 per square feet, Savills reports. The building is single-let to the UK Government for a further two years.

Savills is tracking £1.3 billion under offer across 24 deals.

All parties declined to comment.