Chanel pays record price for Rodeo Drive store
Chanel has recently acquired its Rodeo Drive store for $152 million, or $13,217 a square foot, a record price on a square-foot basis for retail space in California.
The sale reinforced Rodeo Drive’s status as one of the most exclusive shopping spots in the world, and it underlined how the hughstreet has continued rebounding from the severe recession of a few years ago.
Rodeo Drive ranks second among the most expensive U.S. retail streets, trailing only upper Fifth Avenue in New York, the commercial brokerage Cushman & Wakefield said in a report last month. Fifth Avenue rents range from $1,000 to $3,500 a square foot.
But some analysts said Chanel’s decision to buy its 11,500-square-foot store at the corner of Rodeo Drive and Brighton Way was partly about the retailer’s long-term strategic goals and not a direct response to any surge in consumer spending on expensive clothes, watches and other luxury goods.
Chanel owns another store next door to 400 N. Rodeo, the spot it just purchased, and the privately held company wanted to own both structures “ultimately to tie them together in some fashion” to create “a larger footprint” on the famed street, said Scott Kalt, a partner at Elkins Kalt Weintraub Reuben Gartside, one of the law firms involved in the transaction.