BEVERLY HILLS, CA-The Festival Retail Fund 1 LP has acquired theBanana Republic Building in the Golden Triangle district here for$30 million, marking the second acquisition within the GoldenTriangle this year for the fund and its sixth acquisition of 2007.The property is a two-story, 13,500-sf building at 357 N. BeverlyBlvd.

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Festival fund principal and Festival Cos. president MarkSchurgin points out that the addition of the Banana RepublicBuilding to the fund's portfolio “now gives us two flagshipproperties in one of the world's most exclusive retail districts.”Lending for the purchase of the Banana Republic building wasprovided by Anglo Irish Bank.

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At $2,222 per sf the deal represents one of the top prices everpaid for retail space along the North Beverly Drive corridor,according to Marcus & Millichap. A team from the Marcus &Millichap West Los Angeles office represented both the seller,Beverly Hills-based Meyer Pacific, and the Festival Fund.

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The Marcus & Millichap team included Tony Azzi, vicepresident of investments; associate director Orbell Ovaness andassociate Bradley Baskin. Baskin calls the Banana Republic property“one of the finest class A properties in the Golden Triangledistrict,” noting that rents in the submarket are among the highestin the US.

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Festival Retail Fund 1 LP invests in ground-up and existingretail properties in major metropolitan cities throughout the US.In January the fund acquired the Gucci Building on Rodeo Drive for$40 million.

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The fund, which is managed by principals Mark and RosalindSchurgin, plans to invest up to $800 million over the next twoyears and focuses on “identifying opportunities that presenttremendous value,” Mark Schurgin says. The fund's latest BeverlyHills acquisition follows the Festival Fund's recent purchase ofthe Fairway Shops at Kaanapali and the Napili Plaza in West Mauifor a combined $28.5 million, which were its fourth and fifthacquisitions this year.

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The Shops at Kaanapali is a 35,000-sf neighborhood center thatwas built in 2001 and is located along Honoapiilani Highway in themiddle of the Kaanapali Resort, while the 45,000-sf Napili Plazacommunity center was built in 1991 and is also located onHonoapiilani Highway in the city of Napilli, between Maui's Kapaluaand Kaanapali resorts.

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In March, the fund acquired the 56,000-sf Garin Ranch RetailCenter in the San Francisco East Bay city of Brentwood for $22million, and in July it paid $70 million for a 38,475-sf buildingat 240 Post St. in San Francisco in an area of high-end retailers.The Festival Cos. is a national, full-service shopping centerdevelopment and third-party real estate advisory and managementcompany that has developed and/or added value to more than 120shopping center and retail properties nationwide over the last 25years.

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