LOS ANGELES--(BUSINESS WIRE)--Built in 1992 as a dining anchor for Santa Monica’s Third Street Promenade, the five-story building that currently houses the food court for the shopping plaza will soon undergo a substantial facelift. Lincoln Property Company has partnered with Centennial Real Estate to acquire the property for $20.5 million, and will soon begin a series of renovations that will bring new dining options and creative office space to the highly visited area.
The first two levels of the 27,000 square-foot building are currently dedicated to a variety of quick-serve restaurants including McDonald’s and Subway. The available restaurant space is approximately 50% occupied. The third floor of the property serves as home to an ELS Language School and the top two levels are currently vacant.
Beginning as soon as spring 2014, Lincoln and Centennial will jumpstart a series of renovations valued at $4 million to create a more modern dining space with plenty of natural light and an open, marketplace feel. The partners will also transform the vacant top two levels into creative office space with high ceilings and open layouts to appeal to the growing contingent of creative and technology-driven tenants in Santa Monica.
“This property is one of the best-located buildings on the Third Street Promenade, with enormous upside potential. We consider this acquisition a prime opportunity to help fill the shortage of fast-serve restaurant options and creative office space for the 50,000 people who visit this part of Santa Monica each day,” said David Binswanger, Executive Vice President at Lincoln Property Company. “We are very excited to commence construction and debut what promises to be a central gathering spot for local shoppers, employees and residents.”
The purchase of the Third Street Promenade property represents the fifth joint-venture acquisition for Lincoln and Centennial in the past three years. The partners currently own three other properties in Santa Monica and one in Pacific Palisades, California.
“The purchase of this mixed-use building in Santa Monica fits squarely in our strategy of acquiring underutilized assets in A+ locations throughout the Los Angeles area,” said Scott Schonfeld, Managing Partner of Centennial Real Estate. “We have a very successful partnership with Lincoln Property Company, and we look forward to continuing our work together as we purchase and add value to these well-located and highly compelling properties.”
One of the most popular destinations in Southern California, the Third Street Promenade is internationally known as a nexus of stores, restaurants, farmer’s markets, movie theaters and street performers. The Promenade includes 60 stores and 25 different eating establishments on an outdoor-oriented, pedestrian friendly promenade that occupies Third Street from Broadway to Wilshire Boulevard.
About Lincoln Property Company
Lincoln Property Company, founded in 1965 by its chairman Mack Pogue, is a privately-owned real estate firm involved in real estate investment, development, property management and leasing worldwide. Lincoln has offices in all major markets of the U.S. and throughout Europe. Lincoln’s cumulative development efforts have produced over 100 million square feet of commercial space and over 185,000 multifamily residential units. Lincoln Property Company is one of the largest commercial real estate companies in the world. Visit www.lpcsocal.com for more information.
About Centennial Real Estate
Centennial Real Estate Company is a real estate investment firm specializing in the ownership, operation, and management of retail and office properties in the continental United States. With offices in Dallas and Los Angeles, Centennial and its principals have had a successful track record of enhancing the value of its investments through attentive management, leasing and redevelopment activities. Centennial currently owns and manages approximately 2.4 million square feet of retail and office properties in the Western U.S.