Real Estate Firm in Escrow to Buy Gerry Building
A Los Angeles area investment group has reached an agreement to purchase the historic Gerry Building in the Los Angeles Fashion District for an undisclosed sum, said a representative for the seller, MJW Investments of Santa Monica, Calif. The building had been priced on the market at $15 million.
MJW executives did not name the buyer but described the party as a holding company with an extensive real estate portfolio that includes several local buildings.
Built in the 1940s, the Gerry Building was converted to wholesale showrooms for the apparel industry in 2002. Formerly used as manufacturing space, it was acquired by Mark J. Weinstein as part of a 10-building package deal that MJW reached with the Arthur Gerry family for $18 million. Weinstein has been converting the remaining buildings in the deal into residential property, including the Santee Court residential village in the Fashion District.
The nine-story art deco building apparently will continue on as a wholesale mart, despite rumors suggesting that it was to be converted into residential lofts. It is one of the four wholesale buildings at the corner of Ninth and Los Angeles streets that make up The Intersection, a partnership among the buildings’ owners, the Fashion District and trade show Designers & Agents aimed at marketing the local apparel industry to the trade.
Escrow is expected to close on the Gerry Building by July 21, said Larry Hudson, director of asset management for MJW. Hudson has been overseeing the leasing and marketing of the building since its conversion. It is uncertain whether he will remain with the building; the two parties are still negotiating about various aspects of operations.
The building is about 75 percent leased and houses labels such as Calvin Klein Jeans, Enyce, Rocawear, Blue Marlin, Levi’s and IT jeans as well as a growing list of lingerie brands, including Falke, Clo and Gigi.
Gerry tenant Lois Evans said it will be “business as usual” going forward.“When the building was put up for sale, there was a lot of hearsay about it being turned into lofts, but realistically, there would be so much work and money needed to do that,” she said. “We hope Larry Hudson remains here. He’s been the heart and soul and the go-to guy here.”
Hudson said he will at least stay on to smooth the transition.
The impending sale marks the second building in The Intersection sold this year. Los Angeles–based Jamison Properties closed this spring on the California Market Center for approximately $135 million.
—Robert McAllister
