The next time you go through the theatre district in Los Angeles and see a retail store in its place, you are not lost or hallucinating. It is the sign of the times when it comes to real estate. Essentially, developers have become very creative when it comes to making old, dilapidated properties new again.
Because moviegoers have long since shown their preference for new IMAX enabled metroplexes over historic, single screen theatres, landlords have had to find alternative uses for such large venues. With that, what was once home to some of the iconic venues for movie houses is becoming home to churches, hotels and especially retail outlets.
According to a recent LATimes.com article, the Rialto Theatre has become home to Urban Outfitters, a Philadelphia-based clothing retailer. The 10,000 square foot building was repurposed in 2013. Similarly, the United Artists building on Broadway was revamped and transformed into the Ace Hotel in 2014.
Indeed, the city is eager to see old buildings revitalized, so it should not be surprising that the historic Olympic Theater will be renovated to make way for COS; a higher brand of H&M.
As we noted in a prior post, an iconic property can bring the attention and foot traffic that businesses covet. However, a renovation contract must have the appropriate safeguards to protect investors. An experienced real estate attorney can help with the nuances and critical language to ensure such protections. With so much money required (and so much to be made) nothing should be left to chance.