Another one bites the dust.
Mega-homebuilder Lennar Corporation has acquired an underperforming regional shopping mall in Arcadia, which it will transform into an 80-unit gated community.
Lennar bought the five-acre site that encompasses Santa Anita Plaza in Arcadia for for $36.6 million, according to the Hoffman Company, which announced the deal. Justin Esayian of Hoffman was the broker.
The seller was homebuilder Olson Company, which appeared to have had intentions to redevelop the site.
The deal includes approved plans to repurpose the 58,000-square-foot retail center into “Arcadia 80,” with 80 residential units and 11,000 square feet of new retail space.
The redevelopment plans come as developers are increasingly converting struggling shopping malls and retail centers across the country into tech-friendly office hubs, residential developments and co-working complexes. One of the most prominent in L.A. is the former Westside Pavilion shopping mall. Hudson Pacific Properties and Macerich is converting it into a massive office space for Google called One Westside.
In Arcadia, Lennar’s plan for the gated community includes 12 two-story detached condominiums, 44 three-story attached townhomes, 21 two-story attached townhomes, and three three-story live/work attached townhomes. Miami-based Lennar is the largest homebuilder in the U.S.
Home prices will start in the high $800,000 range for attached units, up to the “low millions” for single-family detached homes, according to Hoffman. Like much of Southern California, Arcadia is experiencing with a shortage of new housing stock. Listing prices have increased 14 percent year over year in the San Gabriel Valley, Esayian said.
The property is located less than three miles from the Arcadia Metro Gold Line station, which links to Downtown Los Angeles and Pasadena.
Orange County-based Olson Company purchased the property for $22.6 million last June.
Recently, Chateau Group scored a $43.5-million bridge loan last week to build a Marriott-branded hotel in Arcadia.
Lennar has several projects in Southern California, including a handful in Anaheim. Earlier this month, the Anaheim Planning Commission approved the firm’s plan to build 238 townhome and condo units in the Platinum Triangle.