It used to be a Cinema, but it wasn’t a cinema. It was just located next to a cinema, but the cinema closed in 2002 and the Cinema closed earlier this year. So the cinemas are long gone, but what remains is one of the most valuable corners of commercial real estate in Buenos Aires: Callao and Santa Fe.
Clarin’s Martin Bidegaray says the neighbors in Barrio Norte and Recoleta believe it’s “the most famous corner in the country.” And while that superlative is open to debate, it’s definitely one of the most expensive. Little surprise then that the new tenant will be the company accustomed to opening restaurants in some of the world’s priciest locations: McDonald’s.
Bidegaray says the new two-story McDonald’s will open in two months and local experts estimate the monthly rent will be around US$50,000. Not to worry: one source says a Golden Arches that size would bring in upwards of US$250,000 a month. If McDonald’s shares a portion of sales to cover the rent, the Argentine family that owns the building could be making US$40,000 monthly. That’s 9,615 Big Mac’s according to The Economist Big Mac Index.
If this is indeed the most famous corner in Argentina, it’s interesting to note that US-based global brands are practically the only ones with the mass appeal, cash flow and staying power to justify such a move…hence the two-story Starbucks next door. (Full Story in Spanish)
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