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Federal Realty sells off historic Bijou Building in Hermosa Beach

The beach town has been attracting an increasing number of investors recently

Federal Realty CEO Donald Wood and the Bijou Building
Federal Realty CEO Donald Wood and the Bijou Building

A historic theater repurposed into a retail and office building in Hermosa Beach has sold for $18 million, as the beach town attracts an increasing number of investors.

The seller was Federal Realty Investment Trust, a retail real estate investment trust based in Maryland. An LLC named 1221 Hermosa Ave bought the 23,170-square-foot property. The purchase worked out to roughly $772 per square foot.

Newmark Knight Frank, which brokered both sides of the deal, announced the sale.

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Located at 1221 Hermosa Avenue, the Bijou Building is three stories. Originally known as The Metropolitan, it was built in 1923 as a theater. Former owner CIM Group repurposed the shuttered theater into a retail building in the early 2000.

It is currently 94 percent occupied to tenants including Chase Bank, Beach City Capital, Steel Partners and Bar Method.

Last month, an auction for the Federal Aviation Administration’s longtime West Coast headquarters in Hermosa Beach prompted a bidding war that brought its sales price from an $8 million starting bid to nearly $40 million. Designed by Cesar Pelli — who died last month — that six-story at 1500 Aviation Boulevard sits on about 11.5 acres.

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