While many Americans are struggling to buy groceries and gasoline, multinational fashion giant Kering - the parent company of Gucci, Balenciaga, and Yves Saint Laurent - had $2 billion in free cash flow from operations last year, and is on a real estate spending spree. It recently paid $1.4 billion or $1766 per square foot for a retail property on the prestigious Via Montenapoleone, the Rodeo Drive of Milan. The seller was genius US REIT Blackstone. It paid $1.2 billion in 2021 for a 14 property portfolio of which the Via Montenapoleone property was only one. So the other 13 properties were free. The price represents a 2.5% cap rate. This follows the purchase this year of 715-717 Fifth Avenue in NYC for $963 million, or $2000 per square foot. #retail #commercialrealestate #blackstone
Slightly more than the $9.68 per square foot I paid on Airline Boulevard.
WOW! What a deal!!
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4moChris Zarpas amazing!