Beverly Hills sale could drive up prices across market: real estate experts consider impact of $500 million deal.THE Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. real estate community is still a buzz over the $500 million sale of 9900 Wilshire Blvd. in Beverly Hills--the planned site of an ultra-luxurious condominium project designed by Pritzker Prize-winning architect Richard Meier Richard Meier (born October 12 1934 in Newark, New Jersey) is an influential, contemporary American architect known for his rationalist designs and the use of the colour white. . British developer Candy & Candy paid about $62.5 million per acre--or $1,445 per square foot--for the site of the former Robinsons-May store at the western edge of Beverly Hills Beverly Hills, city (1990 pop. 31,971), Los Angeles co., S Calif., completely surrounded by the city of Los Angeles; inc. 1914. The largely residential city is home to many motion-picture and television personalities. in a deal disclosed on April 10. Former owner New Pacific Realty Corp. of Beverly Hills paid $33.5 million for the property just three years ago, though since then it commissioned Meier, who designed the Getty Center Getty Center, art museum complex in Brentwood, Calif. operated by the J. Paul Getty Trust. It consists of six buildings on 124 acres (50 hectares) located on a spectacular promontory overlooking Los Angeles. , and was working on getting entitlements from the city. Still, some say the premium paid by the British development company for the 8-acre property will undoubtedly drive up luxury condo prices throughout Los Angeles. "This sale has made us all stop and think and I think we will evaluate the market over the next couple months," said Steve Fifield, president and founder of Fifield Cos., a real estate development firm that is building a high-end condo tower nearby at the other side of the Los Angeles Country Club. "I think this London developer has brought a worldview world·view n. In both senses also called Weltanschauung. 1. The overall perspective from which one sees and interprets the world. 2. A collection of beliefs about life and the universe held by an individual or a group. that L.A. is one of those world class cities." Some say the deal could drive Los Angeles condo pricing into New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. and London territory--cities that can regularly command $2,000 per square foot in sales of completed condominiums. The square footage of the Beverly Hills condo project has not been disclosed but given Candy & Candy's purchase price, brokers fully expect units at 9900 Wilshire Blvd. to easily hit the $2,500 per foot mark. "I think it's clear now this sale transaction represents Beverly Hills' standard," said New Pacific Realty chief executive David Margulies David Joseph Margulies (born February 19, 1937) is an American actor. Margulies was born in Brooklyn, New York to Runya (née Zeltzer), a nurse and museum worker, and Harry David Margulies, a lawyer.[1] Margulies graduated from City College of New York. . "This is about Beverly Hills re-envisioning its future. Some people have said it's resting on its laurels. If you take a world comparison approach and look at buildings in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and London, there clearly is a trading gap trading gap A period of time during which a security is not traded because of a wide gap between the bid and ask or because of an official halt triggered by a technical factor, such as the expected release of a major news story relating to the security. ." Candy & Candy spokesman Harvey Englander said that the company plans to execute New Pacific Realty's plans for the property, which includes the Meier-designed luxury condos. Candy & Candy will seek entitlements for the development this summer. Fifield's forthcoming 1200 Club View tower, which it is developing with Raleigh Enterprises Inc., made a splash last year when it was announced that the asking price for the penthouse at the 21-story Westwood building was $18 million, or $2,161 a foot. Compared to the 252-unit Candy & Candy development, 1200 Club View is small, with just 35 units. The condo tower is scheduled to open in fall 2009, and will sell for an average of about $1,500 per foot, Fifield said. "We are those provincial guys. We looked at land cost," Fifield said. "(Candy & Candy) is making a bet that people will get those (higher) prices in L.A." There will also be a limited number of ultra high-end condo units at Beverly Hills' forthcoming Montage Hotel that could sell for $3,000 a foot. That project would open in 2009. Staff reporter Daniel Miller can be reached at (323)549-5225, ext. 263, or dmiller@labusinessjournal.com. |
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