Value-add shopping center investor unloads a slice of Walmart-anchored Orange County mall

Los Angeles /
Sep.September 17, 2019 11:00 AM
Marianne Lowenthal and an aerial view of the shopping center (Credit: Google Maps)
Marianne Lowenthal and an aerial view of the shopping center (Credit: Google Maps)

Across the U.S., developers have been finding new ways to transform lagging shopping malls by converting them into creative offices or residential complexes.

But in the Los Angeles area, real estate investors are still actively buying and selling smaller shopping centers, which have proven staying power.

In the latest move, Combined Properties sold a 121,800-square-foot property inside the Walmart and Target-anchored Foothill Ranch Towne Center in Orange County.

The developer unloaded the property for $22.25 million, according to Newmark Knight Frank, which advised on the sale. Combined Properties, which specializes in value-add shopping centers and mixed-use properties, had purchased the Lake Forest property four years ago. The property is fully leased to five tenants, including At Home Furnishings.

The buyer was an unnamed private family trust.

NKF’s Pete Bethea and Rob Ippolito and Glenn Rudy represented the seller.

Combined Properties, which has offices in Beverly Hills and Washington, D.C., did not return calls for comment.

The sale comes at a time where mega-developers are buying underperforming regional malls and adapting them to other, more in-demand uses, from multifamily to creative office.

Lennar Corporation, one of the nation’s largest homebuilders, scooped up the Santa Anita Plaza in Arcadia for $36.6 million in June. The deal included approved plans to transform the 58,000-square-foot center into a mixed-used property, with 80 residential units and 11,000 square feet of new retail space.

Hudson Pacific Properties and Macerich teamed up to reimagine the struggling Westside Pavilion mall in L.A. into a creative office campus, with a smattering of entertainment and retail. Google inked a lease for 584,000 square feet office space at the location, which won’t open until 2022.


Related Articles

arrow_forward_ios
Los Angeles City Councilwoman Monica Rodriguez (Wikipedia Commons, iStock) 

The wait for a table is 3 weeks: Industry erupts at LA’s outdoor dining ban

The wait for a table is 3 weeks: Industry erupts at LA’s outdoor dining ban
Brookfield CEO Brian Kingston and the Northridge Fashion Center at 9301 Tampa Avenue (Brookfield, Google Maps)

Brookfield delinquent on $210M Northridge mall loan

Brookfield delinquent on $210M Northridge mall loan
Jeffrey Allen and Canyon Drive Manor apartments (Google Maps, iStock)

Raintree Partners buys 551-unit LA apartment portfolio

Raintree Partners buys 551-unit LA apartment portfolio
Avril Lavigne and 6453 Guernsey Avenue (Getty, Realtor)

Avril Lavigne buys Malibu home Scott Gillen rebuilt

Avril Lavigne buys Malibu home Scott Gillen rebuilt
(iStock)

LA County affirms Covid restaurant restrictions despite opposition

LA County affirms Covid restaurant restrictions despite opposition
Electronic Arts CEO Andrew Wilson and 4820 Alla Road (Getty, Del Rey Campus)

Video game maker EA downsizes LA office footprint

Video game maker EA downsizes LA office footprint
(iStock)

Rents are down and out in LA; surrounding counties see bump

Rents are down and out in LA; surrounding counties see bump
A rendering of the project and an aerial view of the property (AXIS/GFA via NoHo Neighborhood Association, Google Maps) 

Napa Industries plans 171-unit hotel in NoHo Arts District

Napa Industries plans 171-unit hotel in NoHo Arts District
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...