A joint venture of Atlas Capital Group and Eastern Real Estate paid $76 million for Eagle Rock Plaza shopping center, and may be looking to add a residential complex at the sprawling property.
LNR Partners sold the 466,000-square-foot mall along with a medical office, according to the Los Angeles Business Journal. Target and Macy’s are among the anchors at the 22-acre shopping center, at 2560 and 2700 Colorado Boulevard. The Macy’s lease expires in 2023.
The 20,000-square-foot medical office is on two acres, according to the report.
Newmark’s Kyle Miller, who led a team that represented the seller, said Atlas and Eastern have discussed adding the residential component.
LNR first listed the properties in January 2020, but pulled back when the pandemic upended the market. Malls are still fighting their way back, and some are luring in pop-up stores with lease discounts.
Retail investment sales also slowed last year. Had the Eagle Rock deal closed in 2020, it would have been the second-largest deal of the year in L.A. County.
California has gradually lifted capacity restrictions on retailers since the start of the year and earlier this month essentially lifted all restrictions for retail and most other businesses.
Despite the retail problems, Miller said the mall — which hit the market again in January — received 10 offers. Atlas and Eastern had been competing for the purchase, but ended up joining forces, he told the Business Journal.
[LABJ] — Dennis Lynch