Santa Monica Place Dealt Another Blow with Nordstrom Closure

Forever 21, Louis Vuitton and now Nordstrom? The Santa Monica mall can’t catch a break as yet another retailer, and its sole apparel anchor, prepares to close its doors.
Macerich said it's making headway on its turnaround plan as it continues to rid its portfolio of underperforming malls and aggressively leases up space.
Macerich defaulted on its $300 million loan tied to Santa Monica Place. The Santa Monica outdoor mall is now in receivership. PHOTO BY VERNON PROPER.

Nordstrom is expected to close for good at Santa Monica Place next month, leaving the outdoor mall without an anchor and yet another vacant storefront. 

A Nordstrom representative confirmed to the Santa Monica Daily Press the location’s last day at the mall is Aug. 26. 

The off-price channel has been the growth story for Nordstrom in more recent years, most notably during the pandemic. That’s continued with the department store chain’s focus on opening more Nordstrom Rack doors as its namesake and full-price locations contract.  

The retailer went private in May after being bought by members of the founding family and Mexico retailer El Puerto de Liverpool in a $6.3 billion deal. 

Nordstrom’s Santa Monica closure unleashes anchor store space in a mall already struggling with occupancy. Bloomingdale’s, the mall’s other department store anchor, left in 2021. 

In recent months, Forever 21 closed its doors at the mall as part of previously announced plans nationwide to shutter the fast-fashion retailer’s stores following its March Chapter 11 bankruptcy filing. 

Louis Vuitton also left Santa Monica Place earlier this year. 

What’s left are AllSaints, Nike, Johnny Was, Free People, Coach and Uniqlo among other retailers. On the food front is Din Tai Fung, Cheesecake Factory, LouLou and other restaurants. 

Student loan debt repayment looms large over retail
Santa Monica Place file photo. PHOTO BY VERNON PROPER.

When Will Santa Monica Place Bounce Back? 

Macerich defaulted on a $300 million loan tied to the property last year, escalating the mall’s troubles. 

The center sat in limbo until April when receiver Trigild said it hired Prism Places to oversee Santa Monica Place’s day-to-day operations. 

Prism is a retail property management company with a portfolio that includes Runway Playa Vista, Pasadena Commons, Paseo Nuevo in Santa Barbara and Hérmitage Rodeo in Beverly Hills

The firm has its work cut out for it in reviving the over 500,000-square-foot mall. 

“While challenges have led to vacancy at both Santa Monica Place and its neighboring retail district, Third Street Promenade, the city and state have made crucial policy changes that will allow for Santa Monica’s recovery,” Prism founder and CEO Stenn Parton said in a statement. 

In May an Entertainment Zone launched at the neighboring Third Street Promenade, which allowed for adult consumption of alcoholic beverages from licensed business in the designated area. The Entertainment Zone sits between Wilshire Boulevard and Broadway in the 1200 to 1400 blocks and is open Friday through Sunday from 11 a.m. to 10 p.m.

It’s unclear what Prism has planned for the mall, but Parton has a resume that could bring a revival. 

The executive was previously with DJM Capital Partners and his father Lindsay Parton remains there as president. DJM has made a name for itself with boutique retail centers, such as Lido Marina Village in Newport Beach and Long Beach Exchange in Long Beach. 

Additionally, Parton and his brothers, Raan and Shea Parton, are founders of B Corporation Apolis, which is best known for its Fair Trade-certified jute market bags. 

Vernon Proper: fashion without the fluff. Business news and analysis.

Subscribe

Vernon Proper: Fashion without the fluff. Sign up for alerts on West Coast business news and analysis with our weekly newsletter.

Be First to Comment

What do you think? Let's start a conversation.

This site uses Akismet to reduce spam. Learn how your comment data is processed.