LaSalle Acquires Iconic Restoration Hardware Asset in Buckhead District of Atlanta
CHICAGO (July 24, 2017) – LaSalle Investment Management (“LaSalle”), announced that its U.S. value-add fund LaSalle Income & Growth Fund VII (“Fund VII”) has acquired Restoration Hardware’s (“RH”) Gallery at the Estate in Buckhead, a six-story, 63,831-square-foot retail property located on Peachtree Road NW, between Pharr Road and Paces Ferry Road.
This acquisition presented a compelling opportunity to own a high-visibility retail property that is generating impressive sales volumes, on a prominent intersection in the Atlanta market.
Opened in 2014, the Buckhead location is one of the largest Design Gallery concept stores opened by RH, and illustrates the company’s strategy to blend experiential showrooms with online sales. The larger store size allows RH to showcase their full product line and provides flexibility as the company continues to innovate its store configuration and merchandise concepts.
The property is located in the affluent Buckhead district of Atlanta, and benefits from high visibility, with nearly 60,000 vehicles per day on Peachtree Road, and strong market demographics, with an average household income of $121,000. The property’s design is inspired by classic Southern estates, featuring dramatic double staircases, a multi-story central hall, and barrel-vaulted passageways. The property also features a large outdoor area at the top of the building with skyline views of Buckhead and Midtown, and a formal estate garden and reflecting pool located behind the building, with outdoor furniture items on display.
In 2015, RH unveiled its initial foray into hospitality at RH Chicago, The Gallery at the Three Arts Club. This first of its kind retail concept provides a seamlessly integrated culinary offering, including the 3 Arts Club Café, the 3 Arts Club Wine Vault & Tasting Room, and the 3 Arts Club Pantry & Espresso Bar.
Joseph Munoz, Investment Officer for LaSalle’s Income & Growth fund series, commented: “We are pleased to have acquired this iconic and high-performing property leased to a best-in-class retailer that understands how to leverage the power of well-located real estate to gain multi-channel market share. RH has demonstrated a bold ability to continuously improve the experience for their customers. As a provider of flexible capital, we are positioned to provide real estate solutions to support a dynamic tenant like RH, as their full-line design gallery concept matures and grows.”
About LaSalle Income & Growth Funds
The LaSalle Income & Growth funds are the firm’s flagship closed-end U.S. value add fund series, with the first fund in the series launched in 1996. Aggregate fund series capital commitments total $2.6 billion, with over $5.7 billion invested in over 98 property investments across all funds in the series. Fund VII seeks to acquire under-managed, under-capitalized, or mispriced assets to be repositioned as core assets. Property level-investment strategies include lease-up, renovation/repositioning and ground-up development. Fund VII began acquiring assets in 2016.
About LaSalle Investment Management
LaSalle Investment Management, Inc. (together with its global investment advisory affiliates, “LaSalle”) is one of the world’s leading real estate investment managers. LaSalle on a global basis manages approximately $57.6 billion of private and public equity and private debt investments. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. LaSalle Investment Management Inc., the sponsor of Fund VII and who has over $16.9 billion of assets under management, is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Incorporated (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit www.lasalle.com.
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