Private equity will take a turn at merchandising with a deal for a shopping center in Long Beach.
Costa Mesa-based real estate investor CenterCal Properties and private equity firm DRA Advisors spent $145 million to acquire the Long Beach Towne Center, Bisnow reported. The seller was Phoenix-based mall giant Vestar, which developed the mall that opened in 1999. The sale price for the 870,000-square-foot property works out to about $167 per square foot Commercial Observer reported.
The focus now turns to breathing new life into Long Beach Towne Center in the form of upgrades to outdoor gathering areas, new restaurants, revamped signage and lighting and improved pedestrian pathways.
The outdoor areas will feature shaded seating, enhanced landscaping, public art and year-round programming, according to a statement. Food and beverage options could expand to include more chef-driven outposts and fast-casual concepts, and the stores will be filled by “a thoughtful mix of best-in-class national retailers, emerging brands and local favorites.”
Malls in the Los Angeles region and across Southern California have been trading hands in recent months, albeit at lower prices than previously valued.
Last month, Steerpoint and Steelwave joined forces to buy The Shoppes at Carlsbad for $71.5 million, or $98 per square foot. It’s a significant tumble from the $170 million that previous owner Brookfield Properties paid for the mall in 2015.
In August, Pacific Retail Capital Partners, Lyon Living and Silverpeak paid $332.1 million for Lakewood Center mall in Lakewood. The value of the 150-acre property previously owned by Macerich has fallen by more than half over the past decade; S&P Global Ratings valued the mall at $280 million in May, or a 55 percent drop from a high of $630 million in 2015.
The month prior, Regency Centers spent $357 million on five retail properties in Orange County. The portfolio, totaling 630,000 square feet, includes Bridgepark Plaza, Mercantile West, Mercantile East, Terrace Shops and Sendero Marketplace.
— Chris Malone Méndez