Criterion on the Promenade Sold, 30,000 square feet of Mixed Use Retail
Price not disclosed. 150 feet of frontage, 32 studios, 23K feet of office.
June 14, 2016
American Realty Advisors announced the acquisition of the Criterion on the Promenade, a high-street retail/mixed-use asset located in Santa Monica, CA. Criterion, which is located on the southeast corner of Arizona Avenue and Third Street Promenade in the heart of Downtown Santa Monica's upscale retail and entertainment district, has 150 feet of frontage on the Third Street Promenade and 150 feet of frontage on Arizona Avenue, just three blocks from Santa Monica beach.
American's acquisition includes 30,046 sf of retail, 22,935 sf of office, and 32 studio and one-bedroom residential units. Major tenants include Victoria's Secret, Brookstone, and WeWork, a leading provider of co-working office space.
Originally consisting of a movie theater built in the 1920s, Criterion was gut-renovated in the 1980s for construction of a multiplex theater, and the historic façade was kept intact while the structure was extended to the east. The property was completely renovated again in 2015.
The Third Street Promenade is currently one of the top retail streets in the country, averaging 40,000 pedestrians per day.
According to Gary Steinhardt, American's Senior Director, Investments, this acquisition secures an asset with a fortress location, high quality tenants, and great visibility.
"We have acquired a generational high-street retail and mixed-use asset for our investors," says Steinhardt. "Criterion is located in an area characterized by extremely high barriers to entry, very attractive demographics, and strong demand from retail, office, and residential tenants," he noted. In addition to the significant influx of tourists year-round in the area, there are nearly 400,000 residents living within a five-mile radius of Criterion with an average annual household income of $107,000.
In recent years, the City of Santa Monica has completed over a dozen major projects between the downtown area and the adjacent Civic Center to maintain Santa Monica's status as one of the top tourist destinations in the country. The city continues to encourage mixed-use, pedestrian-oriented, multi-modal planning where creative, innovative design is infused into the streetscape, architecture, landscape, art, and transportation network.
Because of this focus, "downtown Santa Monica remains a dynamic and sought-after area for office space by leading firms in the TAMIE industries," notes Steinhardt. "Criterion's location, which is proximate to the area's most visited destinations, including Santa Monica Place Mall, Civic Center, Palisades Garden Walk, and the future Metrolink station located at 4th Street and Colorado Avenue, is irreplaceable," he continued.
The seller, Criterion Santa Monica, LLC, a joint venture between Metropolitan Pacific Capital and an opportunistic commingled fund managed by Clarion Partners, was represented by Christopher Hoffman and Rikki Keating of Eastdil Secured.
With over $7.4 billion in assets under management, American Realty Advisors is an investment manager to institutional investors, and has provided real estate investment management services for over 27 years utilizing core and value-added commingled funds and separate accounts. American acquires assets directly or provides equity, preferred equity, mezzanine debt, debt and hybrid debt to primary investors and developers operating throughout the United States for office, industrial, multi-family, and retail properties. More information regarding American can be found at http://www.americanreal.com.