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California  + Retail  | 

GSP’s Rifkind Shares Insight on Iconic Fred Segal Deal

By Dennis Kaiser

George Smith Partners recently secured financing on behalf of Canadian retail investment firm CormackHill, LP for the $43-million acquisition of the iconic Fred Segal retail property at 8100 Melrose Ave. in Hollywood, CA. Connect Media asked David Rifkind to share insights behind the deal.

Q. What shifts are transpiring in the retail sector that makes this deal stand out?

A. Retail is in the midst of a generational change that is reshaping financing in this sector. The shift toward a multi-channel strategy that provides customers with a seamless shopping experience, whether online or in-store, is changing the way retailers view physical space and retail districts. The result is increased caution among lenders, especially those who don’t yet understand exactly how this shift will impact the commercial real estate market moving forward.

Q. How does this deal reflect a larger trend in the retail market of retailers and retail insiders being willing to make substantial investments in quintessential shopping districts?

A. Brick-and-mortar properties in key high-end shopping destinations such as Melrose are more important than ever to a retailer’s long-term brand. Chanel’s recent acquisitions in SoHo and Beverly Hills, as well as recent Beverly Hills acquisitions by Zara and LVMH illustrate this trend.

Q. What made this acquisition attractive for the investor?

A. CormackHill, LP is extremely knowledgeable in the retail sector, and understood the long term value of this irreplaceable location. Contrary to what many in the industry claim, enlightened players in the retail sector are highly profitable – utilizing big data, efficient sourcing and manufacturing. In fact, retailers adapting to technology integration are operating at higher margins than ever before.  Many retailers will continue to reduce their store counts, concentrating instead on flagship locations. This trend will continue to define the strongest retail districts for years to come.

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

  • ◦Sale/Acquisition
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