Commercial real estate services firm Avison Young this week completed an eight-year retail lease transaction in Santa Monica with global candy and gift retailer It’Sugar.
The lease is valued at $6.2 million and totals 2,250 square feet at 1427 Third Street in the heart of downtown Santa Monica on the Third Street Promenade. The retailer is leasing the property at a rate of $312 per square foot – a record-high in the prized shopping district.
Avison Young Principal Randy Starr, based in the company’s Santa Monica office, represented the owner/landlord Promenade Enterprises LP in the transaction. Jeremy Ezra of RKF represented It’Sugar.
“This lease sets a new benchmark for the Promenade,” said Starr. “The highest per-square-foot rent for Third Street prior to this lease was $240 annually. I think everything from here out will be leased at over $300 as retailers understand the intrinsic value of the district and can justify paying top dollar as their sales continue to prove the value.”
Starr adds that the landlord selected It’Sugar among several other retailers due to its unique, specialty appeal. It’Sugar also complements the current retailer mix.
The retailer plans on occupying the new space in March 2014. A shoe store, Journeys, is currently in the space and will be vacating the premises January 1, 2014. Other surrounding retailers include Apple, Brandy Melville, Converse, Forever 21, Guess?, Lucky Brand, Quiksilver, and Urban Outfitters. The property is near the major cross streets of Santa Monica and Broadway.
Founded in 2006, Deerfield Beach, FL-based It’Sugar is one of the largest and fastest-growing candy and gift retailers in the world. The company owns and operates more than 70 retail locations in major markets, including New York, Las Vegas, Los Angeles, San Francisco, Miami, Scottsdale, San Diego, Palm Beach, London, Dubai and Grand Cayman.