Here’s what tenants are paying at Macerich’s Santa Monica Place

Open-air mall anchored by Nordstrom and Bloomingdale’s, which moved in following 2010 renovation

Los Angeles /
Nov.November 06, 2020 01:00 PM
Macerich CEO Thomas O’Hern and Santa Monica Place mall
Macerich CEO Thomas O’Hern and Santa Monica Place mall

Macerich’s Santa Monica Place shopping center, one block east of Santa Monica Pier, sits in the middle of a prime retail corridor that would welcome more than 8 million visitors in a typical, non-pandemic year. But like most malls during Covid-19, the 523,000-square-foot Santa Monica Place has been hit.

Macerich has also seen its finances suffer, although recent months have shown some signs of improvement. Overall rent collections had risen to 81 percent by the end of October, compared to 60 percent at the end of the second quarter.

A decade ago, Macerich wrapped up a $285 million makeover on the property, converting it from an enclosed center to an open-air mall by removing the roof and gutting the interior. The extension of the Metro Expo Line to Downtown Santa Monica in 2016 provided another boost to traffic in the area.

In 2017, the mall REIT refinanced the three-story complex with a $300 million loan from Wells Fargo, which was securitized into a single-asset CMBS deal known as WFCM 2017-SMP. Documents associated with that deal provide an inside look at the property’s finances.

As of late 2017, the mall was 89 percent leased to “a mix of traditional and non-traditional retail, as well as dining and entertainment options,” according to the loan prospectus. Data from Trepp shows that occupancy has since risen to 94 percent as of mid-2020, helped by two big leases signed after the refinancing, both of which are now among the mall’s top five tenants.

Cayton Children’s Museum signed a lease for 21,000 square feet at the mall in late 2018, relocated from its 14,000-square-foot space at the Jewish Federation Goldsmith Center. A few months later, supermodel Tyra Banks signed a lease for ModelLand, a 21,000-square-foot interactive amusement park.

The current anchor tenants at Santa Monica Place were all brought in following the 2010 renovation. Nordstrom replaced a Robinson’s-May at the complex, while Bloomingdale’s took up two floors at what used to be a three-floor Macy’s. ArcLight Cinemas moved into the third floor of the former Macy’s in 2015.
Excluding the two anchor retailers, whose annual base rent per square foot is in the single digits, the overall average base rent at the shopping center was $71 a foot in 2017.

The CMBS loan on the shopping center has remained current throughout the pandemic, with a solid debt service coverage ratio of 2.71. The loan is currently set to mature next month, although it has two one-year extension options remaining.

Macerich’s corporate headquarters, also located in Santa Monica, are just a 10-minute walk from Santa Monica Place.






    Related Articles

    arrow_forward_ios
    Gov. Gavin Newsom (Getty)

    Statewide curfew means more bad news for restaurants, retailers

    Statewide curfew means more bad news for restaurants, retailers
    Jeffrey Worther and Blackstone’s Jonathan Gray with (clockwise from top left) Media Studios, The Point, 3800 Alameda and Central Park (Getty)

    Here’s what tenants pay in Blackstone and Worthe’s Burbank office portfolio

    Here’s what tenants pay in Blackstone and Worthe’s Burbank office portfolio
    Colorado Campus at 2041-2115 Colorado Avenue and Northwestern Mutual CEO John E. Schlifske

    Northwestern Mutual picks up Santa Monica office campus for $166M

    Northwestern Mutual picks up Santa Monica office campus for $166M
    L.A. businesses can now deny service to any patron not wearing a mask

    LA businesses may deny service to those not wearing masks

    LA businesses may deny service to those not wearing masks
    Brookfield Property Partners CEO Brian Kingston and the Gas Company Tower at 555 West 5th Street

    Here’s what tenants are paying at Brookfield’s Gas Company Tower

    Here’s what tenants are paying at Brookfield’s Gas Company Tower
    Los Angeles land-use map

    Prop 15 tax measure could add housing: study

    Prop 15 tax measure could add housing: study
    CEO of Amazon Web Services Andy Jassy

    A top Amazon exec buys in Santa Monica

    A top Amazon exec buys in Santa Monica
    Brookfield CEO Brian Kingston and 725 South Figueroa Street

    Here’s what tenants pay at Brookfield’s 950K sf Ernst & Young Plaza

    Here’s what tenants pay at Brookfield’s 950K sf Ernst & Young Plaza
    arrow_forward_ios

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

    Loading...