LOS ANGELES, Calif. (AUGUST 16, 2021) – Kennedy Wilson Brokerage, a division of Kennedy-Wilson Properties, Ltd., recently finalized a retail lease with CVS at 1212 S. Flower St. in Downtown Los Angeles. Executive Vice President & Director of Retail Lee Shapiro and Vice President Justin Weiss represented the landlord in the transaction. The ±11,132 square-foot space is located on the ground floor of a five-story office building flanked by two high-rise multifamily towers with a combined 730 luxury apartments—together forming the new three-building, mixed-use community Hope+Flower.
“Despite higher vacancy rates resulting from COVID-19, our team remained confident in the lasting appeal of this high-profile, Downtown core location,” said Shapiro. “We were thrilled to secure such a reputable national credit tenant for our client.”
Hope+Flower’s prime corner location is one block from Staples Center and the Convention Center in the heart of South Park, Downtown’s most popular residential neighborhood with more than 7,000 apartments in the immediate vicinity and thousands more under construction. The property is adjacent to the Pico Station of Metro’s light rail network, which connects Downtown Los Angeles to USC, Culver City, Santa Monica and Long Beach via the E Line (Expo) and A Line (Blue).
Originally intended for office use, the space posed challenges for converting to retail given its urban location with limited subterranean parking. While CVS traditionally pursues sites with drive-up parking, the company understood the benefits of opening a store at this highly visible location and was willing to make the necessary adjustments instead of building a brand new, first-generation retail space. Shapiro and Weiss successfully structured and closed the deal, bringing one of the most recognizable pharmacy/convenience store brands to the property.
“DTLA has continued to showcase its resilience and staying power even through these unprecedented times,” said Weiss. “The fact that CVS executed a long-term lease to reposition a sizable office floorplate for a retail build-out in Downtown amidst a pandemic is a testament to their belief in the market.”
The Kennedy Wilson Brokerage team skillfully navigated through the intricacies of the transaction process, collaborating closely with the landlord and tenant on architectural matters, financial terms and timelines that were favorable to both parties. As a result, CVS is now working with the property owner to convert the large block space into community serving retail, proving the pharmacy’s dominance in the marketplace thanks to its flexible design that is adaptable for urban settings.
About Kennedy Wilson Brokerage
Kennedy Wilson Brokerage, a division of Kennedy-Wilson Properties, Ltd., is a leader in the leasing and sale of commercial real estate, representing institutional and private capital investors and tenants across the United States. Our capabilities include investment sales and acquisitions, agency leasing, tenant representation, corporate services, valuation and advisory services. For more information, visit www.kennedywilsonservices.com/brokerage.
Kennedy-Wilson Properties, Ltd. is independently owned and operated and not a part of Kennedy-Wilson Holdings, Inc. or any of its subsidiaries and affiliates.
Julia Yuryev | Alyssa Lawrence | Michael Martin