@karenzkloset
Apparently real estate is the latest luxury handbag move. Louis Vuitton Moët Hennessy (LVMH), the Paris-based luxury conglomerate that owns Louis Vuitton among many other top brands, purchased another property on one of the most famous and luxurious retail streets in Beverly Hills. Of course we are talking about the famed Rodeo Drive.
These three highly valued blocks of Rodeo Drive in Beverly Hills are the place to find high end luxury retail shopping. Pretty much all luxury houses demand visibility there, including Hermès and Chanel. When a property becomes available, it is aggressively pursued, regardless of the cost, until the deal is done.
LVMH’s newest acquisition is the 86-room Luxe hotel that was forced to close during the pandemic and never reopened. The $200 million sale price makes it one of the highest record setting deals at $2.3 million per room. The property also includes the three storefronts presently leased by Rolex, Patek Philippe, and Ferrari.
@karenzkloset
This latest acquisition cements LVMH’s dominance on the street. For those keeping count, LVMH owns or leases more than ten buildings on the small three-block luxury retail street.
LVMH brands are highly visible up and down Rodeo Drive. Starting at Two Rodeo, you’ll find LVMH’s Tiffany & Co. Directly across the street is the Fendi boutique (soon to expand into the LVMH owned Rimowa store next door).
@karenzkloset
On the next corner of Rodeo Drive and Dayton Way stands the three-story silver-slatted Louis Vuitton flagship store. A few steps further is the Christian Dior boutique, then the Dior Men’s boutique and Fendi pop-up. Another Dior pop-up opened for this holiday season a half block down. On the next corner is Bvlgari, followed by Loro Piana, and Celine across the street, all owned by LVMH though most of the properties are leased.
@karenzkloset
@karenzkloset
LVMH owns several large properties in the third and final block of Rodeo Drive. Included in LVMH’s real estate portfolio are 420 N. Rodeo Drive (formerly occupied by House of Bijan); 456 N. Rodeo Drive (now occupied by Celine boutique); and 468 N. Rodeo Drive (the large white building formerly occupied by Brooks Brothers).
@karenzkloset
Even before the acquisition of the Luxe Hotel, LVMH planned to build a 9 story, 115-room ultra premium, extremely luxurious and exclusive Cheval Blanc Hotel on the Brooks Brothers site that it acquired in 2018 (along with an adjacent lot). This hotel is projected to open in 2025.
See timeline below for a list of properties acquired by LVMH on Rodeo Drive in the past 10 years.
2012 – LVMH purchased 319-323 N. Rodeo Drive for $85 million
2016 – LVMH purchased 420 N. Rodeo Drive for $122 million, which previously housed the iconic yellow House of Bijan boutique.
2018 – LVMH purchased 468 N. Rodeo Drive for $245 million, which housed the former Brooks Brothers retail store.
2018 – LVMH purchased 456 N. Rodeo Drive for $110 million in a sale that stunned the City because it was sold to LVMH one day after it was purchased for $55 million by the Sterling Organization. Celine (owned by LVMH is occupying this space presently).
2021 – LVMH purchased the Luxe hotel at 360 N. Rodeo Drive for $200 million almost breaking the existing record of cost per room.
As a reminder, LVMH’s brand portfolio includes Louis Vuitton, Tiffany & Co., Christian Dior, Dior Mens, Fendi, Celine, Rimowa, Bvlgari, and Loro Piana, all of which have a flagship or retail store on Rodeo Drive.
Is this a LVMH takeover of Rodeo Drive? Or is real estate just a good investment for the firm?
Love, PurseBop
XO
Updated: December 19th, 2021
