Vintage Real Estate Acquires SouthBay Pavilion.
On July 10, 2009, Vintage Real Estate, acquired the SouthBay Pavilion located immediately off the 405 Freeway with direct exposure to over 350,000 cars daily in the Los Angeles Trade Area.
The 1.1 million-square-foot regional mall is anchored by a newly constructed Target Greatland, Ikea, Sears, and JCPenney and 54 specialty stores and restaurants including other significant national retailers such as Old Navy, Children’s Place, Foot Action and Daniel’s Jewelers. SouthBay Pavilion is a destination for the more than 2.5 million residents within a 10-mile radius. In addition, the mall services a 150,000-person daytime work force with many “Fortune 500” companies such as BP, Honda, Mercedes Benz, Mobil, Shell, Toyota and Honeywell. SouthBay Pavilion is a regional draw with Ikea attracting shoppers from a much wider trade area.
The previous owner spent over $30 million on interior and exterior renovations, completed in 2007, resulting in a bustling streetscape with several exterior-facing restaurants including Panda Express, Panera Bread, San Sai Grill, Ce Fiore Frozen Yogurt, Five Guys Burgers, Wing Stop and Jamba Juice.
Although significant progress was achieved in this initial redevelopment, Vintage is confident that SouthBay Pavilion offers significant upside through maximizing development on the large 73-acre site and establishing a more synergistic merchandising plan by bringing in several national tenants that are a natural fit for the center. Vintage Real Estate expects to achieve great success in repositioning the 30,000 square feet of vacant space, as well as adding three new pad restaurants and ultimately a 16-screen stadium theater. The Vintage executive team includes six former Westfield executives with a proven track record of repositioning similar malls nationwide.
"SouthBay Pavilion fits perfectly within our business model of acquiring 'value-add,' well-located regional malls and shopping centers with high growth potential," said Brenton Watson, President of Vintage Real Estate. "This acquisition will provide positive initial returns based on the strength of current income. Additionally, we see an exciting opportunity to add significant value by leveraging our relationships with national retailers and improving the overall retail mix at the mall. Ultimately, we will implement a redevelopment plan to expand the center."
Vintage Real Estate Chairman Fred Sands is optimistic about the recent acquisition. "We can't go wrong with 73 acres right off the 405 Freeway in Los Angeles. This mall presently underserves the marketplace, but we will address that. We're already in talks with two major theater chains to bring in a 16-screen stadium seating theater, as well as national chain stores and restaurants that want to be part of our expansion plans."