A sale of Washington Prime Group’s struggling Westminster Mall is expected to move forward.
The deal could close in the next 45 to 60 days, according to an update from Morningstar Credit Analytics. That’s after an $85 million loan on the 1.4 million-square-foot Orange County mall headed to special servicing in February, with Columbus, Ohio-based Washington Prime later receiving a six-month extension to work out a sale.
Washington Prime declined to comment.
The shopping center investor secured its loan for the mall from JPMorgan Chase in 2014, when the property was appraised at $171 million. Its valuation has since dropped 39 percent to $104 million, according to Morningstar’s update.
Macy’s, JCPenney and Target anchor the property.
In 2022, Irvine-based real estate firm Shopoff Realty Investments bought the mall’s fourth anchor space, once occupied by Sears, in addition to the neighboring parking lot. Shopoff also acquired the Macy’s building and adjacent parking, leasing the space back to the department store retailer.
In all, Shopoff owns 26 acres of the mall with plans to redevelop the property by creating a mixed-use community called Bolsa Pacific at Westminster.
A spokesperson for the company declined to confirm the timeline for Shopoff’s plans or if it holds an option to buy the remainder of the property.
The developer revealed plans last year for its parcels, which would include over 1,000 rental units, about 100 townhomes for sale, a 175-room hotel, a 2.5-acre park and about 25,000 square feet of retail and restaurants. Shopoff estimated at the time that a groundbreaking on the project would occur in 2025.
Read more
- Washington Prime faces default of $85M loan on Westminster Mall
- Shopoff looks to build 250 homes and hotel in Huntington Beach
- Shopoff plans to add 1,200 homes to Westminster Mall
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