Overview

A significant transition is underway for Lakewood Center following its acquisition by Pacific Retail Capital Partners, Lyon Living, and Silverpeak. The new owners aim to transform the iconic retail space into a vibrant mixed-use district that integrates residential, dining, wellness, and entertainment options while preserving its legacy.

Key details

  • The property spans 2 million square feet and is located at the intersection of Lakewood and Del Amo boulevards.
  • Lakewood Center was originally built between 1950 and 1953.
  • The mall is the second-largest single-level enclosed shopping center in Los Angeles County.
  • It attracts approximately 22 million visitors annually, making it one of the most-visited centers in California and the U.S.
  • Legacy retailers include Costco, Target, Macy’s, JCPenney, and Best Buy.
  • The acquisition marks the end of Macerich’s long tenure, which began in the 1970s.
  • A price for the sale was not disclosed, but Macerich expects net proceeds of around $5 million above its outstanding debt of $305.8 million.
  • The existing fixed-rate loan has an interest rate of 8 percent and matures in June 2026.
  • PRCP CEO Steve Plenge emphasized the opportunity to honor the mall's history while adapting it for future needs.
  • Lyon Living will oversee residential and lifestyle components, with a focus on creating a sustainable community.
  • Silverpeak will contribute capital and investment strategies for the redevelopment.
  • City officials have expressed support for the redevelopment plans, viewing it as a chance to revitalize the center as a community hub.

Context

The acquisition and planned redevelopment of Lakewood Center reflect a broader trend in the retail sector, where traditional malls are being reimagined to include residential and community spaces that cater to modern consumer needs.

What happens next

The new owners will initiate master planning and community outreach to align their redevelopment efforts with local priorities, although specific timelines for construction have not been provided.

What we don't know yet

Details regarding the specific plans for the mixed-use transformation, including the timeline for construction and the exact nature of new amenities, have not been confirmed.