One word comes to mind when you pair Los Angeles and real estate: expensive. But creating a premier space can attract top-notch tenants, which then brings in the nearby clientele that can afford to live, work and play in, well, LA. Of course, tourists are enthusiastic spenders as well. Price tags and calories don’t count when you’re on vacation, after all.
Way Out West
Malibu-based developer, manager and sponsor Christina knows all about what it takes to cultivate a dynamic retail offering in Los Angeles. In uber-developed areas like this, it typically takes a tired or underachieving retail space in a prime location that can be made into something grand.
“Christina operates with a laser focus on investing only in the ultra-prime submarkets of Los Angeles: Beverly Hills, Brentwood, Century City, Malibu, Santa Monica, Westwood, West Hollywood and Venice/Silicon Beach,” says Lawrence “Larry” Taylor, founder and CEO of Christina. “Redevelopment opportunities in these submarkets, which have limited inventory of pedestrian-oriented retail streets, are rarely available.”
Given their scarce availability, the 46-year-old firm’s strategy has been to establish and maintain relationships with property owners in these markets.
“Then, when disposition opportunities present themselves due to life changes, estate planning or similar reasons, we are generally the first to know,” Taylor continues.
Christina has taken spaces like 332 S. Beverly Drive in Beverly Hills and reimagined them for today’s retail tenants. The 3,880-square-foot space features floor-to-ceiling glass, an upgraded courtyard and 50 feet of frontage along Beverly Drive. Built in 1948, the space is now for lease. Nearby tenants include Urth Caffe, the Four Seasons Beverly Wilshire, the Maybourne Hotel, Starbucks and Parakeet Café, which is set to open soon.
The partial build-out — which was designed by architect Zoltan Pali, who is famous for designing the Wallis Annenberg Center for the Performing Arts — can also be divisible. This is something Taylor sees as crucial in today’s retail environment, particularly in LA.
“We’re seeing that retailers are seeking out limited store sizes in neighborhoods with strong demographics,” he says. “Given the use of ecommerce, the availability of delivery services and the proliferation of last-mile facilities, retailers’ physical locations focus on showcasing their products. The storefronts can have a smaller footprint as the need for substantial inventory storage space is no longer necessary.”
High Street Meets Main Street
Taylor also loves the Westside for its Main Street feels, with tree-lined walkways, boutique shops and eateries.
“In Los Angeles specifically, retailers benefit from a year-round excellent climate,” he says. “Shopping and dining in an outdoor environment, especially post-COVID, brings walkability and open-air experiences to the forefront.”
That’s exactly what Christina set out to do in 2018 when it purchased a structure located at 124 ½ – 148 North Larchmont Blvd. in Los Angeles’ Hancock Park neighborhood for a reported $23.5 million. The firm worked with architect Gensler to update and restore the building, which resides within the Larchmont Village Shopping District, in 2021.
The restoration included breaking up the long exterior into four distinct “buildings” that feature oversized windows, high ceilings and clear glass. Upgrades were also made to the street and sidewalk entrances of each retailer, ensuring every high-street shop was handicap accessible.
The result is Larchmont Mercantile, a 14-store space that spans more than 17,000 square feet. It offers the largest contiguous street frontage in the neighborhood, with storefronts ranging from 993 to 1,311 square feet. A year after leasing began, Larchmont Mercantile reached full occupancy in late 2022. Tenants include Skin Laundry, Velvet by Graham & Spencer, Midland, Hidden Jeans, Credo Beauty and the Scent Room, among others. The project also features eateries like SUA Kitchen & Market, Holey Grail Donuts and Boba the Great.
Even back in 2018, Taylor saw great potential in this structure.
“Location, location, location,” he says. “If you’re going to create a shopping destination in LA that will be popular for years to come, you also have to have a deep understanding of the culture of each submarket, as well as the products and services desired by the shoppers. Larchmont provides an inviting and safe atmosphere to shop and dine, all within a coveted and historic neighborhood. We artfully reimagined Larchmont Mercantile to seamlessly match the neighborhood’s character, with a modern interpretation.”
Though Larchmont Mercantile was developed during COVID, the current challenges still haven’t slowed Christina down. The firm is currently working on the design, permitting and redevelopment of a vacant lot on Melrose Avenue between Genesee and Spaulding avenues near the Fairfax District. The space previously housed a two-story commercial building that was materially damaged by fire in 2020. Christina acquired the asset soon thereafter. The firm is once again teaming with Pali’s studio, SPF:a, to create a modern mixed-use project.
“Despite the recent rapid rise in interest rates, which has affected all facets of the real estate industry and the economy, demand for street retail in the best locations continues to accelerate,” Taylor says. “Our long-established fundamental investment strategy has remained unchanged. We’ve operated through many economic cycles, double-digit interest rates and high inflation, so we understand how to adapt to a constantly evolving commercial real estate investment landscape.”
— Nellie Day