Rodeo Drive Location Brings Record Price
LosThe market for ultra high-end luxury goods has been slipping for the fast few years, but demand for the high-end locations where these goods are sold is soaring! The record-setting price paid for a store on Rodeo Drive in Beverly Hills is a testament to the brand value of visibility on one of the world's most famous shopping streets. This month, LVMH, the parent company of Louis Vuitton, purchased the building at 420 N. Rodeo for $122 million, a record-setting $19,405 per square foot. Prior to this sale, the highest price paid for commercial real estate in California had been $13, 217 per square foot for a property purchased by Chanel just a few doors down at 400 N. Rodeo. These prices are indicators of the value of an iconic location to a luxury brand. "There are only 2 1/2 blocks on Rodeo Drive," said Marc Schillinger, a director with commercial real estate company HFF who represented the seller, "Every luxury retailer wants to anchor their brand on Rodeo." The iconic location was previously the home of the House of Bijan and is one of the most-recognizable storefronts in retail. The renowned yellow Rolls-Royce Phantom and the yellow and black Bugatti Veyron (both Bijan limited editions) match the building’s façade and interior and have long been hallmarks of the internationally-acclaimed custom clothier. Bijan is a world-class fashion house founded in 1976 by the late Iranian-American designer Bijan Pakzad. The exclusive boutique caters to the ultra-high-net-worth international shoppers by appointment-only. Bijan has successfully operated at the property for more than 40 years and is the longest-standing privately-owned designer house on Rodeo Drive. A lavish Mediterranean style Palazzo, the building has reportedly been classified as a Beverly Hills landmark. The fashion house is decorated with marble floors, a sweeping staircase, a sparkling crystal chandelier comprised of 1,100 Bijan perfume bottles, Italian and French antiques, rare rugs and artwork, including a Fernando Botero painting aptly named The Rich.