LA Mart for Sale
GDA Staff -- Gifts and Dec, 2/6/2012 3:44:31 PM
Los Angeles - Merchandise Mart Properties has put the gift and home showroom building LA Mart on the block through commercial real estate company Madison Partners.
Of the buildings' nearly 800,000 leasable square foot area, just over 500,000, or about 64 percent, is made up of showrooms. (The rest is offices, storage, and a small amount of other uses.) However, all that space is not necessarily occupied: Madison Partners lists the building as being 59 percent leased.
It's not clear whether a buyer will continue to operate the Mart as a showroom building or repurpose it. Madison touts the Mart's net operating income of $5.3 million from its tenants' leases ($3.2 million of which comes from its recently signed 15-year lease with the County of Los Angeles for 142,360 square feet of office space.) However it also highlights "significant redevelopment/repositioning potential" for the site.
San Francisco-based Shorenstein Properties inked a deal to buy MMPI's Los Angeles 350 West Mart for $228 million in January. Though it was originally built for overflow trade-show business, according to the Wall Street Journal, it is now largely office space, and the new owners plan to turn the remaining exhibition space into offices as well.
MMPI declined to comment.
As a long time tenant of the LA Mart I understand the disappointment and concern the sale may have on the industry. I for one have been and will continue to be committed to the Gift & Home Market at the LA Mart for as long as it is a viable model for my company. The building has sold once or twice in my 18 years here and each sale has brought with it improvements and growth.
The economic challenges we have all faced these past few years have led to attrition in the building but this has been a national experince not one central to LA alone. The LA Mart is a great place to shop, with some of the best showrooms in the country. We invite you all to continue to visit us and support an industry we are happy to be a part of.
Matthew Katzenson - 2012-03-26 15:09:11 EDT
As a store owner I have seen the decline of The Marketplace when MMPI took over the L.A Mart and GLM took over The California Gift Show. It has been all down hill from there.
Just like our L.A Dodgers.
Fran Bettis - 2012-02-09 10:39:28 EST
There is always the Las Vegas Market!!! I started shopping this Market last year and I love it. I just need more tenants.
Joe Miller - 2012-02-08 11:41:33 ESTI can't say that I'm surprised, but I am highly disappointed that MMPI couldn't make a go of it in the long run. It's been obvious that they had other ideas for the future since taking in the LA County Children's Social Services Dept. As a retailer who has been going to this mart for over 20 years, it is a sad commentary on our market, lack of commitment to it and perhaps on our whole industry.
On the flip side, there is a great opportunity for another organization to come in and make an impact in LA. The fashion industry is thriving here and with all the cross over, it just makes sense to enhance the Lifestyle Market here too. Don't give up on LA - we are alive and well!
meredith miller - 2012-02-08 11:24:37 EST
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