This is a notable deal, especially with talk recently being that it's harder to get transactions done with today's tougher credit markets. This sounds like an extremely solid property--sales per square foot are over $500 per square foot and it hosts a lot of upscale retailers. That's exactly the kind of property that seems like it would be easiest to move in the current climate. Moreover, the buyer is an international institutional investor. So there's a currency advantage--as the dollar continues to sink. And because it's an institution, debt might not be an issue (or else they may have a cheaper cost of capital than a U.S. buyer).
The luxury Two Rodeo outdoor shopping center, featuring such upscale stores as Tiffany & Co., Lalique and Versace, has been sold for $275 million.
The Irish investment firm Sloane Capital purchased the shopping area at Rodeo Drive and Wilshire Boulevard. Twenty-seven retailers occupy the prestigious site and rents surpass $500 a square foot.
"This is clearly an icon among cosmopolitan trophy properties," said Pierre Rolin of London-based Strategic Real Estate Advisors, which represents the sellers. Rolin would only identify the seller as a European family trust.