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One school of thought is that if you're not in the real estate business, and you're in some other business like fashion, then you probably shouldn't own a lot of your real estate. The general idea is that the opportunity cost of doing so is too great; it ties up a lot of capital, taking it away from the core business.
But then there's LVMH.
In 2023, the company spent €2.45 billion on real estate across the world, mostly for its retail stores. And then this week it was announced that, earlier this year, the company closed on the Villa Bagatelle in Cannes for €46.5 million. Supposedly this is one of the most expensive homes ever sold in the city.
LVMH plans to use the 12-suite villa for brand activations during events like the Cannes Film Festival, and then rent it out when they don't need it.
So clearly they are of a different school of thought. They are blending experiential marketing and real estate investing, which is an interesting approach. It also makes me wonder if this has something to do with the fact that Bernard Arnault started his career in real estate.
For more information on the Villa Bagatelle or to inquire about renting it for your next family vacation, go here.
One school of thought is that if you're not in the real estate business, and you're in some other business like fashion, then you probably shouldn't own a lot of your real estate. The general idea is that the opportunity cost of doing so is too great; it ties up a lot of capital, taking it away from the core business.
But then there's LVMH.
In 2023, the company spent €2.45 billion on real estate across the world, mostly for its retail stores. And then this week it was announced that, earlier this year, the company closed on the Villa Bagatelle in Cannes for €46.5 million. Supposedly this is one of the most expensive homes ever sold in the city.
LVMH plans to use the 12-suite villa for brand activations during events like the Cannes Film Festival, and then rent it out when they don't need it.
So clearly they are of a different school of thought. They are blending experiential marketing and real estate investing, which is an interesting approach. It also makes me wonder if this has something to do with the fact that Bernard Arnault started his career in real estate.
For more information on the Villa Bagatelle or to inquire about renting it for your next family vacation, go here.
The German investment fund Bayerische Versorgungskammer (BVK) has just closed on the Herzog & de Meuron-designed mixed-use parking garage / event space at 1111 Lincoln in Miami Beach.
They paid USD$283 million or $1,932 per square foot. It’s one of the biggest deals ever on Lincoln Road.
The complex includes 94,488 square feet of office, 51,839 square feet of retail, and a 300 stall parking garage / event space (people get married in this garage). The sale also includes retail space at 1664-1664 Lenox Avenue, but excludes two new residential units according to The Real Deal. I’m assuming it is these two.
The seller was developer Robert Wennett, who bought the site – existing office building + surface parking lot – in 2005 for $23.5 million. He then spent $65 million on the widely celebrated HdM garage and built himself a penthouse residence on top if it.
I am very curious to know the cap rate. But it would also be interesting to try and figure out what sort of premium could attributed to the fact that this is a pretty famous complex designed by HdM.
The Wall Street Journal once wrote that several hundred people walk into this parking garage every single day just to look around. I have been one of those humans on many many occasions. See above photo.
For more photos of 1111 Lincoln, click here.
The German investment fund Bayerische Versorgungskammer (BVK) has just closed on the Herzog & de Meuron-designed mixed-use parking garage / event space at 1111 Lincoln in Miami Beach.
They paid USD$283 million or $1,932 per square foot. It’s one of the biggest deals ever on Lincoln Road.
The complex includes 94,488 square feet of office, 51,839 square feet of retail, and a 300 stall parking garage / event space (people get married in this garage). The sale also includes retail space at 1664-1664 Lenox Avenue, but excludes two new residential units according to The Real Deal. I’m assuming it is these two.
The seller was developer Robert Wennett, who bought the site – existing office building + surface parking lot – in 2005 for $23.5 million. He then spent $65 million on the widely celebrated HdM garage and built himself a penthouse residence on top if it.
I am very curious to know the cap rate. But it would also be interesting to try and figure out what sort of premium could attributed to the fact that this is a pretty famous complex designed by HdM.
The Wall Street Journal once wrote that several hundred people walk into this parking garage every single day just to look around. I have been one of those humans on many many occasions. See above photo.
For more photos of 1111 Lincoln, click here.
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