Macerich and Simon Partner to Create Megamall in SoCal
Leading mall real estate investment trusts Macerich and Simon Property Group have joined forces to in a 50/50 venture to create the 566,000-square-foot Los Angeles Premium Outlets in the Los Angeles County city of Carson, the companies announced in a joint statement.
The megamall will be done in two phases, with the Santa Monica (Macerich) and Indianapolis-based (Simon) companies co-developing and jointly leasing 400,000 square feet of retail space in the first phase, and another 166,000 square feet in the second round of development. Site work for the property is expected to begin immediately with an opening planned for the entire project in the fall of 2021.
Both companies declined to disclose the financial details of the partnership.
The property located in the South Bay city 16 miles south of Downtown Los Angeles, is positioned along several freeways, located just west of the I-5 corridor and south of the 1-10 freeway, as well as 11 miles from the Los Angeles International Airport.
The plan calls for capitalizing on the location’s proximity to highly trafficked freeways by incorporating 2,500 lineal feet of frontage along the I-405 freeway, with 300,000 motorists passing through each day. The project is also located in a high-density region with 2.5 million residents within 10 miles of the property.
Simon and Macerich did not return a request for further project details.
“We are very pleased to partner in the development of this one-of-a-kind outlet project on great, well-positioned real estate to serve one of the nation’s most attractive markets,” Ed Coppola, the president of Macerich, and David Simon, the CEO and chairman of Simon, said in a joint statement. “We look forward to creating the ultimate outlet destination of choice for both local residents and international visitors to Los Angeles.”