New O.C. Shopping Center Sold
Bella Terra, the open-air shopping center under development on the site of the former Huntington Center mall in Huntington Beach, Calif., was sold for $228 million to San Jose, Calif.–based investment group DJM Capital Partners Inc. and GMAC Institutional Advisors, said project developer J.H. Snyder Co. of Los Angeles.
The 40-year-old center has the distinction of being Southern California’s oldest mall. It is being converted into an Italianate-themed lifestyle center with about 70 shops and restaurants encompassing 800,000 square feet. The total project cost will be about $170 million.
The once-enclosed mall fell victim to consolidation in the retail industry after its prime anchors, The Broadway and Montgomery Ward, shuttered in the last decade. Federated Department Stores Inc. acquired Broadway in 1995. Montgomery Ward went out of business in 2001. Nearby competition from the newer Westminster Mall, managed by Simon Properties, and South Coast Plaza in Costa Mesa, Calif., also affected business.
The Ezralow Co. LLC purchased the mall from The Macerich Co. in 1999 for $48 million and took on Snyder as a development partner in 2001.
The new owners plan to wrap up development by the end of the year. Many stores are already open. Kohl’s, a discount department store, and new restaurants such as Islands and California Pizza Kitchen are among the new tenants. A 20-screen movie theater run by Century Theatres is set to open Nov. 17. Other tenants include Bed Bath & Beyond, REI, ULTA Cosmetics, Solitaire Diamonds, Barnes & Noble, Cost Plus, Staples, Circuit City and T-Mobile. Fifteen restaurants will surround an outdoor amphitheater that will feature live entertainment.
Hampstead, Md.–based menswear retailer Jos. A. Bank Clothiers has signed a lease and about five other apparel retailers are in negotiations to open stores, said a DJM spokesperson. DJM and CB Richard Ellis will manage the center.
“This project will continue to develop into a successful lifestyle center and be a destination for local families and visitors alike for years to come,” said Bryan Ezralow, principal with Ezralow Co. “When completed, Bella Terra will be a wonderful addition to Huntington Beach.”
Until the acquisition of Bella Terra, DJM’s retail portfolio consisted of 100,000- to 400,000-square-foot shopping centers, including Village Del Amo, Lakewood Square, La Habra Marketplace and Encino Courtyard.
—Robert McAllister
