From latimes.com:
The site of a former department store in Beverly Hills considered one of the most desirable pieces of real estate in the country sold for $148.3 million on Tuesday to investors from Hong Kong and Singapore.
Joint Treasure International, a Hong Kong-based private equity firm, purchased the 8-acre parcel at the intersection of Wilshire and Santa Monica boulevards. The firm intends to develop luxury condominiums on the site.
“This is an incomparable site that cannot be replicated,” said Daniel Yiu, senior advisor to Joint Treasure, which specializes in global real estate. Joint Treasure has owned the nearby Beverly Wilshire Hotel since 1995 and is familiar with the neighborhood, Yiu said. “Our investor group is interested only in premier properties in premier locations.”
Yiu said that he was uncertain when his company’s revised proposal could be completed and approved by city officials, but that he didn’t intend to wait for the real estate market to recover before getting started.
“The housing market is definitely very depressed right now, but surely one cannot wait until the market picks up to build,” he said. “That would be too late.”
Joint Treasure bought the former Robinsons-May department store site at 9900 Wilshire Blvd. in a private auction from Banco Inbursa, a bank controlled by Mexican billionaire Carlos Slim. The bank took possession of the property last week after completing foreclosure proceedings against CPC Group, which was operated by jet-setting British developers Nicholas and Christian Candy.
The Candys made headlines in 2007 when they bought the parcel for $500 million in one of the largest transactions in the history of Los Angeles County. The seller, Beverly Hills-based New Pacific Realty Corp., had paid $33.5 million for the property three years earlier.
New Pacific had created a plan for the site that called for razing the empty department store and building a luxury condominium and retail complex designed by Richard Meier, architect of the Getty Center. Yiu said Joint Treasure intends to follow through with generally the same plan.
The Candys proposed replacing some of the units with a high-end hotel, but Yiu said Joint Treasure would keep the project residential. “Our group already owns the best hotel in the area,” he said. “We’re not going to compete with ourselves.”
“The housing market is definitely very depressed right now, but surely one cannot wait until the market picks up to build,” he said. “That would be too late.”
AGAIN…”THAT WOULD BE TOO LATE”
Who knows when or if things will “pick up” but these are some fairly-savvy investors who certainly have done their homework.
From 500M to 148M. That had to hurt.
http://www.latimes.com/business/realestate/la-fi-9900-wilshire-20101006,0,4410413.story
What fools! I wonder if they have ever thought about how higher energy prices will affect LA? And the incomes of residents in surrounding areas. Who’d want to live in a luxury condo in the midst of poverty rivaling third world countries?
More like from $33.5 million to $500 million to $148.3 million-in six years total. Now that is one major seasaw ride. Plus, imagine how smart the guy that made a 14,825% profit feels right now? I’d love to know how to turn $33.5 million into $500 million in three years.
AnnieB-Poor people don’t live in Beverly Hills. They live miles away from this site.
I was just going to mention that too. Those condos will sell out in that location, especially if there is a really sweet parking deal.
Rising energy prices will actually make it more desirable to live closer to your work.
Cap on the deal would be if they plan room on the ground floor for a grocery – something like Bristol Farms or Gelsons. Also wise: coffee retailer, dry cleaner, bank, nail/salon/day spa.
Art,
I would agree with you, those properties will sell fast and the building will be full of Hollywood industry types. It is already on a great corner, Trader Vics and the Beverly Hills Hilton Hotel is right there and it is a stone’s throw from Rodeo drive. There will also be plenty of foreign money spent there too.
What, no train going by 44 times a day like in Encintias? I’ll pass. I need more train bell!
Cap on the deal would be if they plan room on the ground floor for a grocery – something like Bristol Farms or Gelsons. Also wise: coffee retailer, dry cleaner, bank, nail/salon/day spa.
Art Eclectic | October 6th, 2010 at 5:20 pm
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I wish they would bring Gelson’s down here. That is an awesome store.
Dear Deity,
Please let the credit bubble in China continue until we get all of our money back.
Your not so reliable servant (I’m afraid),
Emmi