SANTA MONICA, Ca.—January 28, 2005—CIM Group, through its CIM Urban Real Estate Fund, has acquired two retail properties totaling 74,353 square feet in downtown Santa Monica. The acquisition includes the 52,423-square-foot building at 402 Santa Monica Blvd., which is currently occupied by Toys "R" Us, and a 21,930-square-foot building at 1637 Lincoln Blvd.
"Third Street Promenade and the surrounding market has a demographic profile that rivals the best retail districts in the state," said Shaul Kuba, principal of CIM Group. "Continued growth along Santa Monica Blvd. near this location includes a mixed-use development under construction at 5th Street, a new public library and the recently expanded YMCA."
The two-story Toys "R" Us property, built in 1995, is located at the southeast corner of Santa Monica Blvd. and 4th Street, adjacent to the Third Street Promenade. Toys "R" Us will be vacating the 43,738 square feet it currently occupies by April 2005 making available a dominant retail corner in the district. Planet Action will continue to operate in its 8,640 square foot space.
"CIM Group made a compelling proposal for our store in Santa Monica," said Chris Kay, Chief Operating Officer of Toys "R" Us, Inc. "We were pleased to be able to offer all of our employees at the store positions in neighboring locations, since we have 13 other stores in this market. We enjoyed being a part of the Santa Monica community, and we invite our customers to shop at our Culver City, La Cienega or any of our other excellent locations. They will see familiar faces, continue to get great service and great values."
CIM Group has invested in Santa Monica since 1993, and developed many prominent properties along Third Street. "Santa Monica Blvd. and Third Street form an emerging center for Santa Monica retail. This is a tremendous opportunity to lease a premier location that will only grow stronger over time," observed Avi Shemesh, principal of CIM Group.
The 1637 Lincoln Blvd. property is currently leased to Joann's Fabrics. Built in 1965 the building has 130 feet of frontage on Lincoln Blvd. and 42 parking spaces.
CIM Group is an integrated, full service real estate investor with in-house acquisition, development, finance, leasing, and management capabilities. CIM Group directs its efforts towards districts of high population density, including the downtown areas within large cities, smaller "main street" districts within towns and suburban cities, and other locations which lie within the metropolitan areas of the country. Since its inception in 1994, CIM Group has been a leading force in the creation of great streets in the cities of Santa Monica, San Diego, Pasadena, Brea and Hollywood. CIM Group is the manager of the CIM Urban Real Estate Fund, LP. With the California Public Employees' Retirement System and the California State Teachers' Retirement System as lead investors, the Fund has $676 million in equity, allowing for the investment of over $1.6 billion in real estate. The Fund invests in all product types including mixed-use, apartments, condos, office, retail, entertainment and parking in urban and “Main Street” districts throughout the United States.