The struggling Buena Park Downtown mall could be a blank canvas for potential buyers.
The 728,000-square-foot mall is dotted with empty storefronts as anchor Steve & Barry’s LLC and smaller retailers have closed up shop.
The outside wing near the movie theater is more than half empty.
The mall’s owners, Ohio-based Developers Diversified Realty Corp. and New York’s Coventry Real Estate Advisors, recently put the majority of the mall, which sits on 25 acres, up for sale, leaving the anchor Sears and Wal-Mart stores out of the deal.
Illinois-based Sears Holdings Corp. and Arkansas-based Wal-Mart Stores Inc. both own their stores at either end of the mall.
The sale was prompted by Coventry Real Estate Advisors, which owns more than half of the mall.
The mall is listed as having a $103 million gross book value and $61 million in debt on the Developers Diversified Realty’s third-quarter earnings report. The partners bought the mall in 2004 for $91 million.
“We would love to see more things happen at the mall,” said Rick Warsinski, city manager. “It’s perplexing to me.”
With the slumped economy pushing retail sales to new lows, the mall’s not likely to mount a turnaround soon, which means less sales tax revenue for the city. Buena Park already has been hit by declining revenue from auto dealerships.
The mall was the biggest decliner on our annual list of shopping centers. The mall’s revenue fell about $88 million, or 52%, to $80 million in sales for the 12 months through June.
Most indicators suggest things have gotten worse for most shopping centers since June.
Developers Diversified Realty downplays the mall’s struggles.
Instead, it points to John’s Incredible Pizza Co., which is scheduled to open by fall of next year. The 58,000-square-foot pizza and entertainment joint is expected to draw shoppers.
“John’s Incredible Pizza is a great complement to our tenant mix. In fact, it has already generated significant excitement from both tenants and customers,” said Buena Park Downtown’s Betsy Keck, spokeswoman for Developers Diversified Realty.
Warsinski also expects Lake Forest-based John’s Incredible Pizza to lure customers to the mall.
“John’s is a great business,” he said.
Keck said the mall has a “number of national retailers interested in leasing space at the shopping center, including several national restaurants who are evaluating opportunities in the outdoor courtyard.”
It expects to make some tenant an-nouncements in early 2009.
Block’s Last Call
A 30,000-square-foot Neiman Marcus Last Call Store will replace Ron Jon Surf Shop, which is closing Monday at The Block at Orange, where it’s been since 1998. The company said it couldn’t agree on “economically acceptable” lease terms.
The Last Call Store is set to begin construction in January and open in September.
The store is the first Neiman Marcus Last Call Store in Orange County. Last Call outlet store sells marked-down women’s, men’s and children’s clothing, shoes and accessories from Neiman Marcus stores and Neiman Marcus Direct. It also sells luggage, gifts and furniture, among other things.
Sign of the Times
Another sign of the times, Erica Dee boutique is closing in Corona del Mar, where it’s been for seven years. Owner Erica D. Thomas cited the tough retail climate.
Thomas plans to open an online store Jan. 1 at ericadee.com.
Erica Dee started out with a 1,500-square-foot women’s boutique, and in 2006 it expanded into a 4,200-square-foot location, selling women’s, children’s and men’s clothing and accessories.
Toy Boat’s New Waters
Toy Boat Toy Boat Toy Boat recently expanded at Westcliff Square in Newport Beach, doubling its space to about 2,400 square feet.
Toy Boat took over the The Red Balloon’s space. The store, a women’s and children’s boutique, moved into larger digs a couple of doors down at Westcliff Square.
Toy Boat owner Lori Curtin’s expecting the store to do well for the holidays.
“We’re supported by the community,” she said. “We really love being in that center.”
The center has several tenants including K & #233;an Coffee, Pomme B & #233;b & #233;, which makes and sells organic baby food, and SusieCakes bakery.
Bottom for Auto Sales
Chapman University’s economic forecast for 2009 says that slumping sales of new autos will hit bottom next year.
Taxable sales are forecast to be $5.3 billion in 2009, down 3.4% from 2008.
Taxable sales for 2008 are estimated to decline 10.5% this year from 2007 to $5.5 billion.
