LOS ANGELES (October 28, 2024) – 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 family office.
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 present a significant opportunity,” added Neville Rhone, Co-Founder and Managing Partner of Arc.
The Property is 100% leased to best-in-class tenants Leica Camera, Flexform, and Knoll. During Arc’s ownership period, they were able to secure longer term 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.