Aritzia Acquires Fred Segal And Leases Melrose Avenue Flagship For U.S. Growth Strategy
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Building Size
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Asset Type
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Closing
Feb 23, 2026
AI
Aritzia has acquired the Fred Segal brand and entered into a lease agreement for its Melrose Avenue flagship in Los Angeles. Plans include renovating the ivy-covered facade to create a new experiential retail destination as part of its U.S. expansion strategy.
Summary of transaction details:
- Deal Type: Acquisition and Lease
- Transaction Amount: Not disclosed
- Company: Aritzia
- CEO: Jennifer Wong
- Headquarters: British Columbia, Canada
- Previous Owner: Global Icons
Aritzia aims to reimagine the Fred Segal brand for a new generation following the brand's store closures by 2024. This acquisition is a strategic fit within Aritzia’s Everyday Luxury plan, highlighting its commitment to U.S. market growth.
Players
Market CRE Market Snapshot
Boundary boundary · CRE · Sale transactions
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Purchase Price
Annual NOI
Loan Amount
Interest Rate (%)
Loan Term (yrs)
Down Payment (%)
Cap Rate
5.80%
Cash-on-Cash
-1.66%
Monthly Payment
$14,164
Annual Debt Svc
$169,964
Annual Cash Flow
$-11,334
DSCR
0.93