Macerich’s dead weight is someone else’s treasure with the sale of the Lakewood Center now official.
The new ownership – a joint venture involving Los Angeles-based Pacific Retail Capital Partners, Lyon Living of Newport Beach and Silverpeak Real Estate Partners in New York – have big plans for the property that will involve a page out of many malls’ playbooks: adding residential and entertainment.
The Pacific Retail Capital Partners JV paid $332.1 million for the property in a deal that officially closed Aug. 18, according to Macerich. That includes the group assuming the mall’s $317.1 million loan, which matures next June.
While Lakewood didn’t fit in Macerich’s turnaround plans, the center still performs and generates over $1 billion in annual sales.
“Lakewood Center is more than a shopping destination – it’s a landmark of postwar American development, a cornerstone of the Lakewood community and a symbol of how retail can evolve alongside the people it serves,” Pacific Retail Capital Partners CEO Steve Plenge said in a statement.
Evolution is a strong word for the property, which sits at the intersection of Lakewood and Del Amo boulevards.
The mall, built in 1950, is anchored by Target, Macy’s, JCPenney and Costco. A lot of the retailers filling out the rest of the center are traditional chains such as Cotton On, H&M, Foot Locker and Hot Topic.
While, it sits at a busy intersection, it’s less than four miles west of Macerich’s crown jewel in Los Cerritos Center. It’s no wonder, when faced with the decision of what to unload, Macerich chose to sell Lakewood Center.
Los Cerritos Center, at over 1 million square feet, has been able to attract a diverse mix by being a little bit of something for everyone. There are newer brands such as Alo Yoga and Pop Mart. There are anchors in Nordstrom, Macy’s and Dick’s Sporting Goods. And, there are restaurants.
Lakewood Center’s Makeover
Lakewood Center has a long way to go, but there’s potential.
The mall was built in 1953. Macerich acquired it in 1975, with its most recent renovation in 2008.
Locally, Pacific Retail owns the Plaza West Covina, which is 1.2 million square feet with 185 retailers and restaurants. That includes Nordstrom Rack, H&M, Lazy Dog Restaurrant & Bar and Lucille’s Smokehouse Bar-B-Que.
There’s also the Shops at Palm Desert, which is just under 1 million square feet, in Pacific Retail’s portfolio. The indoor mall has more than 100 tenants.
A transformation of Lakewood Center may be several years in the making.
The three companies said in their announcement on the deal that they will begin with the master plan and design work. Timing around a completion was not disclosed.
Specifics around what retail would be added were also general. The companies said there will be more “elevated retail and dining,” in addition to residential units, open space, wellness features and “unique entertainment.”
2 Comments
Long overdue. No one in the neighborhood I know goes to the mall with the exception of Home Depot, Albertsons, and Target. The Costco is third rate compared to others in the area. We all drive to the Los Alamitos Costco for the much better and larger selection. I am sure the Sheriff will be happy to not get all those crime calls to the mall, too.
So,why weren’t the residents that live here notified that this was occurring?I think we all would have liked to have a say as to what they were going to do,Can you say 15 min. City? Personal opinion this is a very bad idea and it will drive shoppers away.