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Luxury brand Louis Vuitton’s iconic building in Tumon is being listed for sale for $4 million, providing potential buyers the opportunity to grab a prime real estate property.
“What makes this property attractive is the location and the workmanship that was put in to build the building for the price that is being asked for,” Blue Pacific Realty principal broker Tom Clark told the Pacific Daily News.
Clark said Louis Vuitton invested a substantial sum in designing and constructing the building “for over $10 million.”
The two-story building sits on a fee simple property of 1,442 square meters, and was built in 2006.
Prior to the pandemic, Louis Vuitton stopped using the building as a retail space and signs outside the building advised customers to visit the T Galleria by DFS instead for a Louis Vuitton boutique.
Even before COVID-19, luxury brand shops were starting to pull out of Guam and the pandemic only made things worse.
Guam used to be a destination for high-end brand shopping for Japanese and Korean tourists when those brands were not available in these Asian countries. As many of the luxury brands expanded to Japan, Korea and other countries, Guam started to lose its appeal as a luxury shopping destination.
Clark, an expert in Guam real estate, said COVID-19 really had a devastating impact on tourism which, in turn, negatively impacted retail in the Tumon area.
“However, retail in general was already declining pre COVID, and I believe that it is a combination of these two factors (declining of luxury good sales and COVID) that is the cause of many closures of businesses,” Clark said. “I don’t think it is a good sign for Guam’s economy, but we have been through similar downturns before, and eventually things recover. The main issue we have to deal with is the uncertainty of when a recovery will take place.”
Tumon Sands Plaza
The Louis Vuitton building is the large retail building right next to Tumon Sands Plaza, which is an entirely separate property.
Tumon Sands Plaza, which used to be a main hub for luxury retail stores, only has Chili’s and Joinus restaurants as main tenants.
Hawaii-based Steve Sombrero, president and principal owner of Cushman & Wakefield ChaneyBrooks, meanwhile, said his firm is “not actively marketing the TSP for sale.”
“In fact, we are seeking new tenants to fill the vacancies resulting from the global pandemic and lackluster visitor industry. We remain very hopeful that Guam’s visitor arrivals will soon return to pre-pandemic levels,” he said. “As asset managers for this property, it is our aim to make TSP the premier shopping and dining experience in Tumon.”
Others for sale
There are other iconic properties being listed for sale in Tumon besides the Louis Vuitton building.
“At this point the Westin Hotel is the largest property on the market at this moment, but for a strictly retail operation, yes, I believe the LV building is the largest commercial retail property on the market at this time,” Clark added.
The 21-floor Westin Hotel in Tumon, which has 424 guest rooms and six villas, is also being listed, and Colliers International Group Inc. is the broker.
In March this year, a federal judge approved the $33 million sale of Pacific Star Resort and Spa in Tumon to Georgia-based construction firm, Eastern Contractors Corp.
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