Maxxam signed Lululemon to a long-term lease at 1453 Third Street Promenade.
Lululemon will occupy 6,400 square feet at the corner of the ground floor retail at Third Street and Broadway. The building is located across the street from the Santa Monica Place Shopping Center. The building exterior will be renovated prior to the store opening in 2014. “We welcome Lululemon to our property on the Third Street Promenade, one of the world’s most famous shopping streets,” says Mehdi Soroudi, a principal at Maxxam Enterprises. “Santa Monica is a symbol of Southern California healthy living and we believe Lululemon is an ideal fit for our property.”
Alex Kozakov and Patrick Wade of CBRE explained that high street retail like Third Street Promenade are in the greatest demand for institutional and private investors due to their higher occupancy and rent growth. These retail corridors attract customers with higher disposable incomes who are looking for a unique shopping experience. It’Sugar signed an eight-year lease for a record $312 per square foot annually. The previous record was $240 per square foot. Avison Young principal Randy Starr believes all new leases at the Promenade will go over $300 per square foot. Maxxam purchased the Promenade Gateway building in 2003.