Investor Pays $175 Mil for 3 Barneys Flagships

LOS ANGELES-A private investment group has paid $175 million for 420,000 sf of prime retail space in three buildings—-one in Beverly Hills, the others in New York and Chicago—-that house the upscale Barneys New York stores.

The group, Ashkenazy Acquisition Corp., acquired the trio of buildings from Japanese retailer Isetan Co. Isetan purchased the properties after Barneys filed for bankruptcy in 1996 and then leased the stores back.

The five-story Beverly Hills building stands at 9570 Wilshire Blvd, at the intersection of Wilshire and Camden Ave. As part of the deal, Ashkenazy will assume a ground lease on the 115,000-sf property.

The New York store has 264,500 sf and stands at 660 Madison Ave. in Manhattan. The Chicago store has 47,500 sf at 25 E. Oaks St., in the city’s Magnificent Mile District.

New York-based Ashkenazy Acquisition is headed by real estate veteran Ben Ashkenazy, who has helped the company’s portfolio grow to more than three million sf across the US. The deal was financed by CDC Mortgage Capital Inc. of New York.

Marc Pollock, first vice president of LA-based CB Richard Ellis Inc.’s PG Team Retail unit, and CB’s Neal Galub helped to lead the team of brokers that represented both sides in the transaction.