LOS ANGELES--(BUSINESS WIRE)--Arc Capital Partners (“Arc”) and Belay Investment Group (“Belay”) announced today that they have successfully realized their investment in a property located at 8777-8783 Beverly Blvd and 308-314 N Robertson Blvd. The property is a 100% leased, 18,800-square-foot retail property including a parking lot with 32 parking spaces located in West Hollywood, CA. The buyer of the property is US Property Trust, a Los Angeles-based real estate holding company.
The disposition validated the value creation by Arc which purchased the property in 2021 during the Covid-19 pandemic. The sale of the property represented a rare opportunity for the buyer to acquire an asset in the heart of the West Hollywood Design District and adjacent to Beverly Hills. West Hollywood remains one of the most sought-after retail destinations in Southern California with exceptional tenant demand and continued densification. Few properties of this quality ever trade hands in this high barriers to entry submarket and especially at such a prominent intersection in the West Hollywood Design District.
“Through our partnership with Belay, we acquired this property off-market and we identified this as a unique opportunity where we could enhance value over time,” said Quincy Allen, Co-Founder and Managing Partner of Arc. He added, “we were able to solidify the long-term stability of the property by engaging with tenants and repositioning the asset in this extremely attractive mixed-use neighborhood.”
“Going forward, Arc remains focused on middle-market value-add opportunities where the current disruption in the capital markets presents significant opportunities,” added Neville Rhone, Co-Founder and Managing Partner of Arc.
During Arc’s ownership period, they secured accretive leases with the three credit retail operators to stabilize the asset. The property is home to the flagship US Leica Camera Store & Gallery, a cutting-edge destination highly regarded for its quality products, events, and art exhibitions. Other tenants include FlexForm, a high-end Italian furniture store, and Knoll, a furniture store acquired by Herman Miller - a public entity with a market cap of $2 billion.
“We are pleased to have achieved another favorable exit through our programmatic partnership with Arc and believe the success of our investment demonstrates both Arc’s execution capabilities, as well as the resilience of well-located ‘high street’ retail assets,” said Eliza Bailey, Co-Founder, CEO & CIO of Belay.
“We have enjoyed working alongside Arc in bringing another value-add business plan to fruition, and we appreciate the team’s dedication in the face of challenging market conditions associated with experiential infill retail locations during the hold period,” said Jake Loughridge, Managing Director at Belay.
The sale was orchestrated by Bryan Ley of JLL and his team of advisors included Jeff Sause, Geoff Tranchina, Gleb Lvovich, Tim Kuruzar, Daniel Tyner, and Alex Olson.
About Arc Capital Partners
Arc Capital Partners is an institutional real estate owner and investment manager dedicated to redefining real estate in mixed-use environments. Founded in 2013 by principals with over $10 billion of transaction experience, Arc targets middle-market investments in high barrier-to-entry Sunbelt markets with strong demographic demand fundamentals. Arc is a diverse-owned firm that pursues preferred equity, joint venture, and direct investments with both compelling value-added/opportunistic returns and downside protection. For further information, please visit www.arccapitalpartners.com.
About Belay Investment Group
Belay Investment Group, LLC is an institutional investment management firm that specializes in granular small to middle market real estate opportunities through the establishment of programmatic partnerships with high-caliber local and specialized operating partners. The firm pursues equity and debt opportunities across the risk spectrum, property types, and geographies, offering its clients scalability and customization. Visit www.belayinvestmentgroup.com for more information.
About US Property Trust
US Property Trust is a leader in the acquisition and ownership of class A retail properties throughout the country. They own and manage a diverse portfolio of shopping centers and commercial real estate across the United States. For more information, please visit www.uspropertytrust.com.
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500 company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 110,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities see a brighter way. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.