Category Archives: Press Room

In Time of Few Mall Developments, New Mall Debuts, Another Major Mall Remodels

A new retail center has opened in Long Beach, Calif., as another mall is scheduled to wrap up the first phase of a $20 million remodel in Santa Barbara, Calif.

The Oct. 14 debut of the 2nd & PCH retail center in Long Beach and the Nov. 15 unveiling of a remodel of the main section of the Paseo Nuevo center in Santa Barbara, are two of a small group of mall-development hot spots in California, which was once one of the hubs of mall development in the world.

Only a couple of new malls were built from the ground up in California this year, and 2nd & PCH was one of them. Another was the One Paseo retail center in Del Mar, Calif. It opened in March. Only a couple of new malls were opened because there is less of the raw material that new projects need to get developed.

Large tracts of open land are a rare find in crowded coastal California, said Larry Kosmont, president of Kosmont Companies, a Los Angeles–headquartered real-estate and economic-development-services firm. Also, consumers’ shopping preferences have changed, and digital commerce has taken market share away from malls, Kosmont said. The shift has cut into the demand for malls.

But opportunity remains for retail centers, said Jean Paul Wardy, president of CenterCal LLC, the El Segundo, Calif.–based company that developed 2nd & PCH. CenterCal also developed The Veranda mall in Concord, Calif. It was one of the few new malls to open in California in 2018. Another one was Palisades Village, the Caruso mall in Los Angeles’ Pacific Palisades neighborhood.

Residents of well-to-do areas of Long Beach such as the Belmont Shores and Naples neighborhoods have to make long drives to shop at traditional malls such as Lakewood Center. Shopping for much of these affluent Long Beach neighborhoods is served by boutique districts such as 2nd Street in Belmont Shores or retail centers with supermarkets, big boxes and cinemas, such as the Marina Pacifica Mall and Marketplace Long Beach.

Wardy said that the absence of traditional malls in that area attracted CenterCal.

“There was a lot of data that showed the customer was there. But there were no stores serving these customers,” he said. “There was a long list of retailers that had never landed in Long Beach for one reason or another.”

Fortunately, some property was becoming available. Raymond Lin and his family were seeking to redevelop the Seaport Marina Hotel in Long Beach, which happens to be located by the corner of 2nd Street and Pacific Coast Highway.

For four years, CenterCal was in talks with Lin on bringing a retail center to the space. Negotiations were successful. In 2017, the hotel was demolished, and the 215,000-square-foot retail center was constructed in its place. Wardy declined to state how much money it cost to develop the center, but a 2017 Los Angeles Times story said it was $100 million.

2nd & PCH is anchored by a Whole Foods supermarket, which opened on Oct. 23, but fashion will be a big deal at the space. Fashion retail is anchored by an Urban Outfitters and a Lululemon Athletica that also opened on Oct. 24.

Other fashion retailers include Johnny Was, Free People and a location for Linne’s, which is a Seal Beach, Calif., boutique. Surf brand Vissla is also scheduled to open a boutique, according to the retail center’s website.

Wardy said that 2nd & PCH is about 95 percent leased. He forecasted that the majority of the people going to the mall will be Long Beach residents. Other shoppers will be drawn from around the region. CenterCal is not taking customer traffic for granted.

Along with seeking out new retailers, 2nd & PCH will be producing events to draw in customers. “There will be movies in the park, concerts and art activities. We do a lot to create a place where customers can be with loved ones and enjoy themselves. We like to try a lot of things and see what resonates. There’s a lot of trial and error,” Wardy explained. “We’re being guided by what the customer wants.”

Owned by Pacific Retail Capital Partners, Paseo Nuevo will be completing the first phase of a $20 million remodel for a center that was introduced in 1990, said Mary Lynn Harms-Romo, Paseo Nuevo’s senior marketing manager.

A lot of the remodeling costs have paid for new brick pavers in the open-air mall as well as a new infrastructure for utilities such as cables that provide networking for the retail center in downtown Santa Barbara.

The remodel will also create common areas where shoppers can hang out. These lounges will feature a fire pit, outdoor seating as well as places to play games such as the traditional Italian bowling game of Bocce.

“Creating a nicer environment will attract better retailers,” Harms-Romo said. “Shopping centers are changing, and we’re trying to be ahead of the curve. It’s going to be more of a destination for multiple things, not just a shopping center.”

Paseo Nuevo is anchored by a Nordstrom. Other tenants include a Gap and a Pacific Sunwear. Much of the center has been leased, Harms-Romo said, because the center offers short-term leases. A couple of years ago, a puppet theater leased a storefront for 90 days. Santa Barbara–based Deckers Inc. also has produced pop-up shops at Paseo Nuevo.

Original Story HERE

What Does It Take to Get People to the Mall? Drag Queens, Racy Circus Acts and Disco Parties

The food court doesn’t cut it any more. Shopping centers look for creative ways to lure potential customers; ‘anything that creates buzz is wonderful for us’

Hoping to increase foot traffic, the Rosedale Center in Roseville, Minn., opened its doors to dog owners, offering them a place to walk pets on frigid Sunday mornings before stores opened. The mall wasn’t prepared for what it unleashed.

This year, more than 400 pooches descended on the two-story shopping center each week. There wasn’t enough time to clean up before the stores opened and many dog owners ignored the free wipes and reminders posted throughout the property. Shoppers groaned about odors, allergies and pet hair on mall furniture.
“We started getting complaints from our customers that were coming in because we just couldn’t keep up,” said Lisa Crain, general manager of Rosedale Center, which is 1.1 million square feet.

The American mall is fighting for its life using the one advantage it has over online stores: vast amounts of space perfect for a giant dance party or a parking lot circus. Sometimes, like the dog-walking play, ideas backfire. But malls plow ahead. “We’ve got to think outside the box. Why not see what happens?” said Ms. Crain.
Pacific Retail Capital Partners last month threw a silent disco dance party in Santa Barbara, Calif., at the Paseo Nuevo open-air shopping center, where attendees grooved to music played on wireless headphones rather than a speaker system. The dance party draws big crowds, mostly college students. Stores experienced a 20% to 200% uptick in business on the day of the disco dance party, said Najla Kayyem, senior vice president of marketing at Pacific Retail.

In Los Angeles, the colossal Beverly Center decided to use its space to support LGBTQ rights (and increase foot traffic) with a Pride celebration in June.Drag queens performed and spoke in the mall’s Grand Court—between the Macy’s and the Bloomingdale’s. The event featured a “Tea with the Queens” interview panel, moderated by television personality Carson Kressley, followed by performances, including a lip sync by Bob the Drag Queen. Bob, a winner of TV’s “RuPaul’s Drag Race,” sang “Somewhere Over the Rainbow” in a short black sequined dress that unfurled into a long rainbow dress halfway through the song. The audience erupted  in cheers. The event drew more than 1,500 people, according to the center’s owner Taubman Centers Inc.

Some attendees received drag-queen makeovers from staff at Sephora. The event helped to keep the shopping center relevant to the community, said Susan Vance, Beverly Center’s marketing and sponsorship director. Some people who attended returned later to shop, she said.
Attention, shoppers.
Participants at an indoor dog-walking event atthe Rosedale Center in Minnesota.
North Riverside Park Mall in North Riverside, Ill., used its ample parking lot to host the Paranormal Cirque 10 times this summer. The acts included acrobats and illusionists with elements of horror, and ticket prices ranged from $10 to $50. Children under 17 had to be accompanied by an adult.

More than 500 people turned up for each show in the black and red big top tent during the two weeks, said Lidia Darkova, North Riverside’s marketing director. “It was very edgy,” she added. “Anything that creates buzz is wonderful for us.”Despite the show’s R-rated material, “mall landlords are now reaching out to us,” said Chante’
DeMoustes, chief operating officer and producer at Cirque Italia, the parent company of Paranormal Cirque.
Most of its recent performances have been in mall parking lots, she added. Rene Pulido went with her husband and another couple to a Paranormal Cirque show this summer at the parking lot of Orland Square Mall in Orland Park, Ill. Instead of going to a restaurant in the mall, they stopped at another a mile away. “We went to Hooters because we wanted some cocktails beforehand and a little snack,” said

Mrs. Pulido. The 48-year-old hairstylist added that for future shows, she might go into the mall “if it was nice and close to the event.” The Minnesota mall that opened its doors to dog walkers couldn’t bring the event to heel and ended up canceling it, disappointing many. A performance by the Paranormal Cirque.

What would you do with vast, empty mall space? Rollerblade? Scavenger hunt? Join the conversation below.
Ann Marie Froehle says she shops at the Rosedale Center mall once or twice a month, and enjoyed going there with Jax, her Shih-tzu and Bichon Frise mix, when the indoor dog walking program was launched. “People weren’t being good to the mall and that bothers me,” said Ms. Froehle.
The mall hasn’t been discouraged from experimenting with other events to increase foot traffic. In May, Rosedale hosted a drag show that drew a sellout crowd. Tickets were $35 to $125, and those over 21 could sip on cocktails in the seating area. The show was held in an open area of the mall near Von Maur department store and stores like Aldo and Zumiez, so people who stood could see it free. Ads for the event said, “Shopping doesn’t have to be a drag.”

Write to Esther Fung at esther.fung@wsj.com

Fall Runway Show Features Clothes, Accessories From Paseo Nuevo Stores

Saturday marked the 5th annual Fall Runway Show at Paseo Nuevo. Some 250 guests watched the show as 27 models — including professionals, community volunteers, retailer employees, friends and family — walked the runway decked out in apparel and accessories from nine Paseo Nuevo stores.

The stores represented a mix of national tenants, local retailers and pop-ups. The show highlighted Ahtleaisure, Hottest Trends, and Holiday looks.

Sephora was the show’s beauty sponsor, creating all the makeup looks. Hair styles were created by Santa Barbara City College Cosmetology Academy students with products provided by AVEDA.

Raffle prizes and gift cards were given away and 200 gift bags were handed out during the show.

Before the show started, 30 YELP elite guests joined for a private VIP Beauty & Brunch event on the terrace. Eureka hosted the brunch and SEPHORA hosted a lip and lash bar. Other participating retailers included L’ Occitane, Saje Natural Wellness and LUSH.

— Marjorie Large for Paseo Nuevo.

Pacific Retail Wins THREE MAXI AWARDS at ICSC 2019 Global Awards CEREMONY

LOS ANGELES, Ca. – (May 20, 2019) – Pacific Retail Capital Partners (PRCP) based in Los Angeles, CA was honored with several awards of distinction during the 2019 Global Awards sponsored by the International Council of Shopping Centers (ICSC). The ICSC Global Awards Program, held in Las Vegas at RECon, the world’s largest retail real estate convention, recognizes the retail real estate industry’s most innovative events, programs, and technologies that add value to shopping centers and companies across the country.

The shopping centers in the PRCP portfolio that utilized a myriad of resources to re-energize centers, drive traffic, increase sales and give back to their respective communities, and were recognized as a MAXI finalists include Paseo Nuevo in Santa Barbara, CA; Eastridge Center in San Jose, CA; The Shops at South Town in Sandy, UT; Galleria White Plains in White Plains, NY; Yorktown Center in Lombard, IL; and Northpark in Jackson, MS. “I have the distinct honor of collaborating with a talented group of people and companies to take Pacific Retail to the next level and create impressionable experiences for our guests, while continuing to push the envelope in the industry”, said Najla Kayyem, Senior Vice President of Marketing, who accepted the awards on behalf of PRCP.

Three Pacific Retail centers took home three MAXI awards – one gold and two silver awards – recognizing the properties’ programming as the best in class across all centers and companies in both the United States and Canada.

With the power of innovation, leadership, and teamwork, PRCP was the recipient of the following awards:

Gold MAXI Award in the category of Impact for shopping centers more than 500,001 square feet: Aloha Winter Rollerland – The Aloha Roller Rink was a staple of the San Jose, CA community from the 70s until 2014 when sadly, it shuttered. Eastridge Center, which was fully-renovated in 2018 and was once home to an ice rink through the 70s as well, is constantly evaluating experiences they can offer to the community. With a vacant Sports Chalet box and an approaching holiday 2018 season, they excitedly explored the idea of bringing the famed roller rink back as a holiday pop-up experience. The new Aloha Roller Rink opened at Eastridge with much success in November 2018 and – after an outstanding continued local response – will remain open for patrons to enjoy throughout 2019. Offering theme nights, free lessons, mommy and me events and more, this go-to destination offers the nostalgic community an updated classic while driving redevelopment awareness, center traffic, sales, and a healthy rent.

 

Silver MAXI Award in the category of Innovation for Shopping Centers more than 500,001 square feet: The Shops at South Town Murals – The Shops at South Town completed an interior renovation in 2017, however the exterior façade was left bare of improvements. With limited ownership funds, the team enacted a creative solution to involve their city council. Envisioning exterior blank walls as an opportunity to cultivate the arts, the team garnered the city’s partnership to fund a public art program. The $85,000 contribution began what is now an ongoing city-funded arts initiative. Activating walls with art created synergy between the center’s picturesque backdrop and the urban-meets-mountain renovation theme. Featuring three artists, the murals serve as a tangible touch point inspiring lasting community engagement.

 

Silver MAXI Award in the category of Revenue for Shopping Centers more than 500,001 square feet: Humana Partnership: Yorktown Center secured a multifaceted year-long partnership with national healthcare agency, Humana. The business development deal generated thousands of dollars in new revenue in 2018 totaling 30% of the business development budget. The partnership included onsite activations, advertising domination in Center Court, and sponsorship of the “Heart & Sole” center walking club. Humana activated Center Court with weekly events including fitness classes, seminars, health checks and games that added experiential value, traffic, and sales. The partnership proved extremely valuable to Humana who renewed the partnership for 2019.

“We are fortunate to not only have some of the most passionate and talented marketing people in the industry on our team, we also have an incredibly savvy group of investors who partner with us to execute these award-winning initiatives,” said Gary Karl, Chief Operating Officer for PRCP.

 

About Pacific Retail Capital Partners

Pacific Retail Capital Partners (PRCP) is one of the nation’s premier retail operating groups of large open-air centers and enclosed malls, with more than $1.8 billion in retail assets presently under management in the United States. Based in Southern California, PRCP provides end-to-end sourcing, assessment, underwriting, valuing, developing, and asset management of retail real estate with a proven track record of repositioning retail properties. PRCP strategically manages over 11 million square feet of regional malls and open-air lifestyle centers. The Executive team has over 150 years of collective real estate expertise with deep experience in leasing, marketing, operations, design, development, investment, and finance. With a keen focus on enhancing the value and quality of its growing portfolio, PRCP is dedicated to creating a unique, strategic vision for each property and exceeding the highest expectations of retail investors, retailers, and consumers. To learn more visit www.pacificretail.com or follow us on social media at:

Facebook: pacificretailcapitalpartners

Instagram: @PacificRetail

 

About ICSC

The International Council of Shopping Centers (ICSC) is the world-wide trade association of the shopping center industry and serves the global retail real estate community. Their 70,000+ member network provides over 100 countries with invaluable resources, connections and industry insights, and work together to shape public policy. For more information about ICSC visit www.icsc.org.