Merchandise Mart Properties, Inc. To Acquire The L.A. Mart

Furniture World Magazine

Merchandise Mart Properties, Inc. (MMPI) announced that its parent company, Vornado Realty Trust, has entered into an agreement to acquire the L.A. Mart from L.A. Mart, LLC and L.A. Mart Owners, LLC. The L.A. Mart, located in downtown Los Angeles, is a 12-story, 720,000 sq.-ft. building, which functions as a central marketplace for gift, decorative accessories, home accents and residential furniture manufacturers and representatives who sell their merchandise on a wholesale basis. As one of the nation's leading trade marts, the L.A. Mart draws buyers throughout the United States during its L.A. Mart Gift, Decorative Accessories & Furniture Festival, held twice annually, as well as many other designer and daily events. "For 30 years, the tenants in the L.A. Mart have been great partners," said Jay Grodin, managing member, L.A. Mart, LLC. "In our analysis of potential buyers for the building, we wanted to make sure the tenants who were good to us were placed in good hands, and we believe MMPI is the perfect new partner for our valued showrooms and can bring our business to new levels." SYNERGY WITH THE L.A. MARKET: "Matching up the L.A. Mart with MMPI presents the potential for tremendous synergy here in the Los Angeles marketplace, and the showrooms will greatly benefit from this acquisition," said Jon Weiglin, president, L.A. Mart, LLC. "MMPI has an exceptional track record of successful trade show and property management in major markets, including Chicago, New York, High Point, N.C., and Washington, D.C." Weiglin and the entire L.A. Mart staff will be retained by MMPI once the acquisition is final. "Los Angeles is a unique, high-style, trend-setting prime marketplace for gift and home furnishings, and we want to energize the efforts of the L.A. Mart there," said Christopher G. Kennedy, executive vice president, MMPI. "We appreciate and understand its design style and are committed to underscore its distinct characteristics as a market leader." Many of the same gift and decorative accessories lines in the L.A. Mart are also represented in showrooms in Chicago, High Point, N.C., and Washington, D.C. Additionally, manufacturers represented in the L.A. Mart participate in MMPI's regional trade shows. "We're pleased to be part of MMPI, whose intimate knowledge of the gift and residential furnishings trade show business will bring many long-term benefits to the Los Angeles marketplace," said Weiglin. "We're confident that our current tenants will reap the rewards of MMPI's trade show, real estate and building management expertise." EXPERIENCE WITH THE L.A. MARKETPLACE: MMPI has been operating in the Los Angeles marketplace since early 1998 when it launched NeoCon® West, the West Coast's largest exposition and conference for commercial interior design and facilities management. For the past three years, the show has grown in both the number of exhibiting manufacturers and attendees who flock to the Los Angeles Convention Center for the West Coast's premier design event. NeoCon West is the headline event for L.A.DesignWeek ™ an event-packed week bringing together other industry-related events and venues for the entire design and facilities management community. MMPI'S EXPLOSIVE GROWTH: The acquisition of the L.A. Mart extends MMPI's leadership role in the ownership and Management of merchandise marts, design centers and trade shows. This most recent transaction complements MMPI's aggressive expansion and acquisitions dedicated to gift, home and contract furnishings. Since Vornado Realty Trust acquired MMPI in 1998, the Chicago-based division has grown dramatically through internal growth, acquisitions and development projects. These include the Architects & Designers Building (A&D Building) in New York City; the Market Square Complex, the National Furniture Mart, and the construction of two new facilities - the Suites at Market Square and Market Square on Main - in High Point, N.C.; the One of a Kind Shows in Toronto and Edmonton and the Interior Design Show of Toronto; the Chicago Gift Show®; Beckman's Handcrafted Gift Show-Chicago; and an expansion of its trade show business to Los Angeles, Toronto, New York and Atlanta. MMPI has retained the high-quality existing staff in each location. It has combined its talents and efforts with existing management - and embraced its culture - to improve the overall marketplace for the industries it serves. "We look forward to working with the managers of the California Gift Show held at the Los Angeles Convention Center to grow the L.A. superregional marketplace with cooperative marketing and promotional efforts," said Kennedy.