Red hot real estate along the East Coast's 'Rodeo Drive'.

Greenwich Avenue didn't earn its nickname as the "East Coast's Rodeo Drive" overnight. The now famous street lined with retailers in Greenwich, Connecticut has quietly become more and more upscale, causing property values to increase exponentially in the last ten years. Today, it's a red-hot destination for luxury retailers, commanding record rents and sale prices.

With Saks Fifth Avenue, designer department store Richards of Greenwich, Coach, Tiffany, and Sephora lining its streets, Greenwich Avenue is catering to the upper income bracket of Fairfield and nearby Westchester County. Fairfield County has a per capita income of more than $80,000, while Greenwich itself boasts a median income upwards of $122,000.

As of late, Greenwich is being seen as a 'gateway' to New York City, and a more comfortable option to many. While shopping in Manhattan can be an overwhelming experience to some, Greenwich Avenue--with its cafes and upscale shops--can offer a glamorous reprieve. Shoppers can window shop the old fashioned way, on a tree-lined downtown street.

The glamour and high end shopping environment comes at a price. Greenwich Avenue retail tenants were paying an average of $10 to $20 per square foot on in the 80's, and between $50 and $60 in the '90's. Five years into this decade, average rents have almost doubled again, hovering around $100 per square foot, with some tenants paying upwards of $150 per square foot. The business climate shows little sign of slowing down.

Just this month, GVA Williams of Connecticut represented the buyer in the purchase of a three-building package on Greenwich Avenue, totaling $23,250,000. The sales represent a high water mark for Greenwich retail properties, reaching $1,000 per square foot for the first time.

The buildings involved include 68 Greenwich Avenue, a 2-story, 3,720 s/f building which houses Plaza Too, a high-end retailer specializing in women's shoes and accessories.

Ninety-eight Greenwich Avenue, a 4,300 s/f, 2-story, office and retail building was also part of the building package. Swank children's clothing store Candy Nichols occupies the ground floor and the global investment fund Atlantic Pacific occupies the second floor office.

Finally, GVA Williams facilitated the purchase of 102-108 Greenwich Avenue, a 15,363s/f, 2-story building with office space located over retail and a 2-story luxury office extension built off of the back of the property. The building shares tenants with 98 Greenwich Avenue, with Candy Nichols on the ground floor and Atlantic Pacific on the second floor. Two additional office tenants are Execution, LLC, an international stock trading firm and BD Remodeling & Restoration, Inc., a high end residential architectural firm.

Sellers can take advantage of the opportunity to diversify into alternate asset classes. With multiple buyers competing for retail properties along this high-end avenue, sellers will most likely experience unprecedented returns.

In February of 2005, a private investor made headlines with the $19 million purchase of 140 Greenwich Avenue, which has long housed the glitzy jeweler Tiffany & Co. The four-story, class-A building, known as "The Tiffany Building," sold for $657 per square foot.

In a, time when some are wary of the stock and bond markets, commercial real estate is virtually always a sound investment option. This proves true especially in geographic areas experiencing strong and steady growth. For investors, Greenwich Avenue continues to offer an opportunity to participate in an area of continued growth, while also benefiting from owning in a niche market.

STEVEN WESTERBERG, VICE PRESIDENT, GVA WILLIAMS, CT