Dromy International Acquires 26,800 SQFT Pasadena Food Hall for $23.25MM

Santa Monica, The Gallery, Beverly Hills, Dromy International, by Angelo, Gordon & Co., CT Plaza, Criterion Theater, Paperboy, Azulé Taqueria, Dialogue, STRFSH, Sloan’s Ice Cream, SocialEats, CBRE

By Catherine Sweeney 

After last trading hands in 2019, a 26,800 square-foot retail property in Santa Monica has sold for approximately $23.25 million, or $867 per square foot. Details of the transaction were revealed in a third quarter West Los Angeles submarket report from CBRE, and showed the property was sold to Beverly Hills-based Dromy International Investment Corporation by Angelo, Gordon & Co.

Located at 1315 3rd Street Promenade, The Gallery is a food hall with various restaurants and a mix of indoor and outdoor dining space. In addition to the food hall, the property also features 15,600 square feet of office space. 

According to the property’s website, The Gallery was initially built in the 1990s as the CT Plaza, named for its close proximity to the Criterion Theater. However, the two-story food hall was renovated in 2015 and 2016, when it was then changed to the gallery. Currently, the food hall is home to a variety of dining options, including Paperboy, Azulé Taqueria, Dialogue, STRFSH, Sloan’s Ice Cream and SocialEats. 

“The Gallery is a one-of-a-kind dining experience that sits at the heart of the Third Street Promenade, right across the street from the recently-renovated 7-screen AMC Theatres and steps from the world famous Santa Monica Farmers Market on Arizona Avenue,” the property’s website states. 

According to the submarket report from CBRE, West Los Angeles overall is beginning to see a slight rebound, recording its most positive net absorption in the past two years. At 302,401 square feet, the third quarter of 2021 marked the first quarter of positive net absorption for the submarket since the beginning of the COVID-19 pandemic. Overall, average asking lease rates rose 1.5 percent in the region to $5.44 per square foot, which is approximately $0.08 quarter-over-quarter. 

In Santa Monica specifically, net absorption reached 103,397 square feet, while average rental rates across the region reached $6.05 per square foot. Availability also remains on par with the rest of the submarket at 21.9 percent.