Shopoff Realty Investments, a manager of opportunistic and value-add real estate investments, has purchased an 11.9-acre parcel of Westminster Mall in Westminster, California, which included an operating Macy’s department store. The $49 million purchase was a sale, with a lease back to the seller.
In July, Shopoff purchased a 14.1-acre parcel of Westminster Mall, including a now-vacant former Sears store, for $46.3 million from Seritage Growth Properties.
“This purchase provides a very unique opportunity for our firm, as we now own a 26-acre piece of real estate in coastal Orange County, a significantly high-barrier-to-entry market,” said William Shopoff, president and chief executive officer. “Under the lease-back agreement, Macy’s will continue to operate its existing retail location in the space, and we will continue to work with the City of Westminster on the redevelopment of this property.”
The Westminster Mall houses approximately 1.3 million square feet of retail on approximately 90 acres, anchored by Target, JCPenney and Macy’s. The site has direct freeway access to I-405 and is located in a central area of the county, surrounded by various residential developments. It is a 15-minute drive from Huntington State Beach, 7.5 miles from Knott’s Berry Farm, 12 miles from the Irvine Business Complex, and less than 13 miles from the Port of Long Beach.
Mavik Capital Management, an opportunistic investment firm, provided $20 million in strategic financing in connection with the acquisition, as well as Shopoff’s earlier acquisition of the former Sears store. Hankey Capital, a bridge lender based in Los Angeles, provided senior financing for the initial acquisition for the planned redevelopment of this portion of the Westminster Mall. Mark Strauss and Rob Quarton with Walker & Dunlop’s Irvine office procured the senior debt on behalf of the sponsorship. Lee Aarons with Land Advisors Organization’s Century City office represented Shopoff Realty Investments in the acquisition of the property.
Shopoff Realty Investments is an Irvine, California-based real estate firm with a 30-year history of value-add and opportunistic investing across the United States. The company primarily focuses on generating appreciation through the repositioning of commercial income-producing properties and the entitlement of land assets. The 30-year history includes operating as Asset Recovery Fund, Eastbridge Partners and Shopoff Realty Investments (formerly known as The Shopoff Group).