LOS ANGELES-DMG World Media of Britain has purchased what it calls “a significant share” of the California Market Center, a three-million-sf showroom facility in Downtown Los Angeles, from the Hertz Group of Los Angeles.

Terms of the transaction were not disclosed, but DMG is believed to have purchased less than a controlling interest in the facility, which Hertz acquired from New York City-based Equitable Life Assurance Society of America in 2001. Hertz paid about $90 million for the trio of 13-story buildings at Olympic Boulevard and Main Street, so even a 20% or 30% interest in the property would likely be a deal in the tens of millions of dollars.

DMG has leased space at the market center since August 2001, when it struck a deal to lease one million sf at the facility for 20 years and signed Dallas Market Center of Texas to manage the space. That initial lease was the beginning of the renovation and revitalization of the property, which was known for many years as the California Mart, but was renamed California Market Center.

The name change reflected DMG's plan to convert the complex from primarily a showroom for garment manufacturers to a showroom for gift and home accessories providers. Last year, a one-million-sf showroom for the gift and home decor industries was opened at the complex.

California Market Center is in the heart of the LA fashion district and close to the Los Angeles Convention Center, home to the biannual California Gift Show, which is owned by DMG and managed for DMG by George Little Management of White Plains, NY.

The Dallas Market Center will continue to play a key part in the management and leasing of the market center, according to officials of the facility, and Paul Lentz will continue as general manager of the California Market Center. DMG World Media is a wholly owned subsidiary of Daily Mail & General Trust PLC, a producer of consumer shows and trade exhibitions around the world.

Instant Insights /

Brits Buy Stake in 3M-SF California Mart

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