An entity related to French luxury retailer LVMH, the owner of such exclusive brands as Louis Vitton, Tiffany and Bulgari, is building up its property holdings with an acquisition in Beverly Hills, California, one of the world's most high-profile shopping destinations.
The affiliate bought the roughly 14,100-square-foot retail property at 357 N. Beverly Drive in the 90210 ZIP code for $43 million, or about $3,000 per square foot, according to public records and someone with direct knowledge of the deal. That's nearly three times the Beverly Hills retail market average of $1,100 per square foot, according to CoStar data.
Public records show the recorded buyer as an entity named 357 N Beverly Drive LLC, which is tied to Dennis Ferrazzano. Ferrazzano is a partner at Chicago-based Barack Ferrazzano, the primary North American real estate counsel for LVMH, the parent company of Louis Vuitton.
An LVMH representative declined to comment. A representative for Ferrazzano did not respond to requests to comment from CoStar News.
Multiple entities were involved in selling the property, and a representative for the sellers did not respond to a request to comment from CoStar News. The building previously sold for $40 million in July 2015, according to CoStar data. The building is fully leased to clothing retailer COS, which is owned by H&M, under a lease that runs through September 2028, according to CoStar data.
Will Stifel, a senior associate with Pasadena-based real estate firm Arbor Realty Capital Advisors, said the sales price reflects the strong demand for retail in Beverly Hills despite COVID-19 putting a damper on shopping sales in the pandemic's early months. Stifel was not involved in the deal.
"Beverly Hills remains a worldwide beacon for shopping and international travelers in the U.S.," Stifel said.
The sale is the latest Beverly Hills acquisition for entities related to LVMH. An entity related to Ferrazzano and LVMH bought the former 80-room Luxe Hotel at 360 N. Rodeo Drive for an eye-popping $200 million, or about $2.5 million a room, in December 2021.
Entities related to LVMH own at least six other properties in Beverly Hills along Beverly Drive and Rodeo Drive, according to CoStar data.
Meanwhile, LVMH is attempting to redevelop a former Brooks Brothers store at 468 N. Rodeo Drive into a luxury Cheval Blanc hotel. The hotel project, though, has run into some resistance. A special election is being held on May 23 in Beverly Hills that will decide whether the hotel project can be built, according to Beverly Press.
The Beverly Hills retail market is among the most desirable in the world. The market's average rent is $99.33 per square foot on an annual basis, well above the greater L.A. average of $35.53 per square foot, according to CoStar data. The market's vacancy rate is 6.4%, above the greater L.A. average of 5.3%.