Brookfield Properties has offloaded part of another shopping mall in California.
The Toronto-based investment management firm sold The Shoppes at Carlsbad in a $71.5 million transaction, Commercial Observer reported. A joint venture between Los Angeles-based Steerpoint Capital and San Mateo-based Steelwave bought the 727,000-square-foot main portion of the property.
The mall at 2525 El Camino Real spans a total 1.1 million square feet. The purchase doesn’t include the mall’s anchor tenants such as Macy’s and JCPenney. The shopping center currently has an occupancy rate of 74 percent, according to CO.
Brookfield acquired the property in 2015 for $170 million. The firm completed renovations at the site two years later. At the $71.5 million price point, or $98 per square foot, Steerpoint and Steelwave picked up the property for a bargain.
Archway Capital provided the buyers with a $42.9 million acquisition loan, according to CO. Of that, $4 million is set aside for capital improvements such as entrance upgrades, new common area seating and renovated restrooms. It marks Archway’s largest loan transaction to date, per CO.
“This acquisition highlights our strategy of securing high-quality assets at a low basis in markets with undeniable strength,” Jack Steger, director of investment and development at Steerpoint, said in a statement, per CO.
Other Southern California malls that have sold recently were transactions with notably higher prices per square foot. Last month, a joint venture between Silverpeak, Pacific Retail Capital Partners and Lyon Living paid $332.1 million, or $158 per square foot, for Macerich’s Lakewood Center in Lakewood. Last year, Stockdale Capital Partners spent $157 million, or $130 per square foot, for The Oaks in Thousand Oaks. A joint venture between RCB Equities and Real Estate Development Associates dropped $156 million, or approximately $142 per square foot, for Puente Hills Mall in the City of Industry.
Brookfield was also the owner of the beleaguered San Francisco Centre mall. It abandoned its ownership post after stopping payments on a loan for the 1.5 million-square-foot property. That mall now sits at 93 percent vacancy, the San Francisco Chronicle reported.
— Chris Malone Méndez
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