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67% Leased; Some Shops Not Paying Fixed Rents
The Anaheim GardenWalk shopping center is up for sale for the second time in five years.
Then as now, the 466,417-square-foot dining, entertainment and retail center is being pitched to potential investors as a bit of a fixerupper, due to long-running vacancy issues that have plagued the property since its 2008 opening.
It's being sold by Arcturus Group LLC, Avenue Capital Group and Elliott Management Corp., New York-based investment firms that partnered to buy the center in late 2012.
They paid a reported $73 million for it, a far cry from the estimated $280 million-or roughly $600 per square foot-construction cost of the center, which was developed by a partnership of San Diego-based Excel Realty Holdings LL C and Los Angeles-based Pacific Coast Capital Partners LLC.
The center opened during the last recession and struggled to attract tenants, despite being next to Disneyland Resort and the Anaheim Convention Center.
It was envisioned by developers as the "adult dining and entertainment alternative" for visitors to the area's theme parks and convention center, as well as locals.
The vision wasn't immediately embraced by the public or prospective tenants. GardenWalk was about 50% leased at the time of its 2012 sale, a deal overseen by the property's lenders.
It's currently 67% leased, according to marketing materials from the national retail investment group of CBRE Group Inc., which has the listing this time for the New York-based ownership group.
Initial bids for GardenWalk are due this week, according to CBRE's marketing materials.
An asking price hasn't been disclo sed; real estate sources tell the Business Journal they expect the mall to go for under $100 million.
The new owners will likely need...