A five-story mixed-use property built in 1992 as a dining anchor for Santa Monica’s Third Street Promenade will undergo a substantial facelift, now that Lincoln Property Company has partnered with Centennial Real Estate to purchase the property for $20.5 million.
The first two levels of the 27,000 square-foot building are currently dedicated to a variety of quick-serve restaurants including McDonald’s and Subway. The available restaurant space is approximately 50 percent occupied. The third floor of the property serves as home to an ELS Language School and the top two levels are currently vacant.
“The purchase of this mixed-use building in Santa Monica fits squarely in our strategy of acquiring underutilized assets in A+ locations throughout the Los Angeles area,” said Scott Schonfeld, managing partner of Centennial Real Estate.
Lincoln and Centennial plan on starting renovations in the spring of this year at a cost of $4 million, designed – according to an official release – “to create a more modern dining space with plenty of natural light and an open, marketplace feel.”
The top two levels have been designate for “creative office space with high ceilings and open layouts.”
“This property is one of the best-located buildings on the Third Street Promenade, with enormous upside potential. We consider this acquisition a prime opportunity to help fill the shortage of fast-serve restaurant options and creative office space for the 50,000 people who visit this part of Santa Monica each day,” said David Binswanger, executive vice president at Lincoln Property Company. “We are very excited to commence construction and debut what promises to be a central gathering spot for local shoppers, employees and residents.”