Another Southern California mall is being targeted for conversion, as Pacific Retail Capital Parts, Silverpeak and Newport Beach-based Lyon Living announced they bought Lakewood Center on the other side of the Los Angeles-Orange County line.
The joint venture paid $332 million for the 28-property Lakewood Center portfolio, with the deal closing on Aug. 19, according to CoStar data. Santa Monica-based Macerich Co., an owner, operator and developer of real estate properties nationwide, was the seller, also per CoStar.
The mall’s flagship building, home to 120 tenants such as Victoria’s Secret, California Pizza Kitchen, H&M and Round 1, was the most expensive property within the portfolio, selling for $108 million.
A social media post by Pacific Retail revealed the joint venture plans to redevelop Lakewood Center into a mixed-use center.
The 2-million-square-foot retail center, according to the Pacific Retail post, would be “reimagined through the development of a comprehensive master plan, transforming the property into a walkable destination that blends legacy retail with new residential, wellness, entertainment, and green spaces.”
“Lakewood Center is more than a shopping destination—it’s a landmark of postwar American development, a cornerstone of the Lakewood community, and a symbol of how retail can evolve alongside the people it serves,” Pacific Retail CEO Steve Plenge said on his company’s LinkedIn post. “Since opening in 1950, the property has adapted to the cultural, economic, and demographic shifts of Southeast Los Angeles, emerging as one of the most highly trafficked malls in the country and consistently generating over $1 billion in annual sales.”
He added Lakewood Center would be transformed “into a next-generation mixed-use destination.”
Southern California malls being targeted for housing or mixed-use include MainPlace in Santa Ana, Westminster Mall in Westminster and Brea Mall in Brea.
The Joint Venture
Pacific Retail, Lyon Living and Sliverpeak created the joint venture that bought Lakewood Center.
Los Angeles-based Pacific Retail was founded in 2008 as a real estate investment group that specializes in retail properties. The firm has more than $3 billion in assets under management nationwide and 20 million square feet of regional, open-air and mixed-use centers.
The Pacific Retail portfolio includes Plaza West Covina and The Shops at Palm Desert.
Newport Beach’s Lyon Living develops and operates mixed-use developments, multifamily properties, hotels, resorts and single-family homes in California, Colorado, Florida, Montana and Nevada. Its local portfolio includes Marea in Dana Point and The Marke in Santa Ana.
Silverpeak is a New York-based alternative investment management firm that acquired $24 billion of assets since its inception in 2010.
Lakewood Center Mall
The city of Lakewood is in Southeast Los Angeles County, with the southeastern tip of the municipality bordering Orange County. Lakewood, like many suburban towns surrounding it, exploded in the 1950s, thanks to the region’s post-World War II growth.
Lakewood Center was part of that suburban explosion, opening in 1952 with The May Co. as one of its anchor tenants.
Los Angeles architect AC Martin designed the entire shopping center in Mid-Century Modern style, according to the LA Conservancy.
The LA Conservancy described Lakewood Center as “the commercial heart of the seminal postwar development.”
Current anchor tenants, according to CoStar, include Albertsons, Forever 21, Macy’s and The Home Depot.
