Joint Venture Scores Debt to Buy “Back to the Future” Mall

RCB Equities and Real Estate Development Associates have secured a $115 million loan to buy the struggling Puente Hills Mall in City of Industry in a redevelopment play.

The Mid-Wilshire- and Newport Beach-based investors landed the financing to acquire the nearly 1.2 million-square-foot indoor mall at 1600 South Azusa Avenue, the Commercial Observer and Commercial Property Executive reported.

Hankey Capital, based in Hancock Park, provided the three-year, floating-rate loan tied to the San Gabriel Valley mall. The Capital Markets Debt Advisory unit of JLL led by Mark Wintner represented the joint venture in the deal.

The seller was Kam Sang, based in Arcadia, which bought the 56-acre mall in 2014 for $100 million, public records show.

In 2022, Continental Partners sourced $65 million in bridge financing tied to the shopping mall, though it’s unclear who the borrower was in the deal.

The Puente Hills Mall, built in 1974, is best known as the fictional Twin Pines Mall in the first “Back to the Future” film of 1985, when Marty McFly cranks up his DeLorean time machine in the mall’s parking lot to travel back to 1955.

In recent years, the mall once anchored by Sears and Macy’s with more than 150 stores has hit harder times. The Sears, Macy’s and other well-known stores such as Toys ‘R’ Us, H&M and Forever 21 are gone, with Burlington pulling out this year.

The only anchors to the mall are an AMC movie theater and Round1 Bowling & Arcade.

RCB Equities and Real Estate Development Associates plan to redevelop the property, according to JLL, though details were unavailable.

“We are thrilled about the opportunity to transform Puente Hills Mall into a vibrant, modern business generator that aligns with the evolving needs of the City of Industry,” Jason Krotts, founder and principal of Real Estate Development, said in a statement.

— Dana Bartholomew