The iconic Third Street Promenade in Santa Monica, renowned for its vibrant atmosphere and high-profile retail destinations, has once again underscored its allure with a significant real estate transaction involving the Apple Store. Highlighting the global magnetism of the Promenade and the undeniable cachet of tech giant Apple Inc., the glass-clad Apple store located on Third Street Promenade has been sold for a staggering $100 million. This landmark deal, brokered late last month, marks the second time the property has changed hands in just four years, further cementing its status as a premier retail location.
Bridgton Realty, a New York-based private family real estate business, is the new owner of this prized retail space, acquiring it from Jordache Enterprises Inc. The sale price translates to an astounding $5,700 per square foot for the 17,550-square-foot retail building. This figure not only sets a new record for retail properties in West Los Angeles but also places it among an elite group in the entire county. Only a handful of properties on Beverly Hills’ prestigious Rodeo Drive have commanded a higher price per square foot, illustrating the exceptional value and desirability of the Apple Store Third Street Promenade Santa Monica location.
Constructed in late 2012, the building at 1415 Third Street Promenade was custom-built for Apple on the site previously occupied by a three-story Borders bookstore. The architectural design of the Apple store is noteworthy, featuring stone-paneled side walls, a striking glass façade, and a soaring 34-foot-high glass ceiling. Interestingly, Jordache Enterprises Inc. had purchased the property in July 2012 while the Apple store was still under construction, demonstrating foresight in recognizing the location’s potential even before the Apple store opened its doors.
The appreciation in value of the Apple store site is remarkable. Since its acquisition in 2010 for $26 million by a partnership of Blatteis & Schnur Inc. and ASB Capital Management (before being sold to Jordache), the property’s value has surged by over 280 percent. This dramatic increase underscores not only the prime location on Third Street Promenade but also the immense value that a tenant like Apple brings to a retail property.
According to Jay Luchs, an executive vice president at Newmark Grubb Knight Frank, the sale price is less about the physical building itself and more about the tenant it houses. He suggests that while the modern building and premier location are undoubtedly factors, the presence of Apple as a tenant is the primary driver of the property’s extraordinary value. Luchs stated, “The sale says more about Apple than it does about the promenade. I doubt if there was the same size space next door for sale it would get close to that kind of price. The buyer gets bragging rights to have such a tenant in its portfolio.”
This perspective highlights the significant impact of brand recognition and tenant desirability in the high-stakes world of commercial real estate. The Apple store third street promenade santa monica is not just a retail space; it’s a statement property that benefits from the convergence of a globally recognized brand and a sought-after location. The record-breaking sale price reaffirms the enduring appeal and investment potential of prime retail locations anchored by leading brands like Apple.
