Gerry Building Back to Leasing Showrooms

The Gerry Building is back in business.

The historic art deco building, located in the Los Angeles Fashion District, is leasing showrooms once again after an attempt to turn the building into office condominiums got upended by the shifting economy.

Hermosa Beach, Calif.–based private-equity investor LaeRoc Funds owns the building and plans to invest up to $2 million in improvements, which include remodeling the lobby, faccedil;ades, sidewalk and elevators as well as opening the rooftop to special events and parties, said LaeRoc partner Kim Benjamin.

About two dozen showrooms are available for lease on a temporary and long-term basis. Rents are averaging $2 to $2.50 per square foot. Showrooms range from 1,100 to about 2,400 square feet.

Vacancies opened up to make way for the for-sale showrooms, but as LaeRoc was gearing up to sell them, the credit markets tightened and access to money was drying up.

“The market never gave us the opportunity. We wanted to give our tenants and others the right to own their own [showrooms] and make money, but we were all exposed to an economy that went sideways,” said Benjamin, a native Angeleno who grew up in the city’s Boyle Heights neighborhood.

Leases will be extended to all segments of the apparel industry. The showrooms will be merchandised within like products.

Benjamin added that LaeRoc plans to bring the Gerry into playing a bigger role during markets. The company plans to hire full-time staff to manage and market the building. Temporary spaces will be available during next month’s market.

“We want to be a material presence in The Intersection. We’re looking forward to the upcoming market and playing a bigger part within this community.”

For more information, e-mail Mary Peng at mary@gerrybuilding.com or call (213) 228-1988. —Robert McAllister