Brookfield Unloads SoCal Retail Space for Under $100 a Foot
Despite its near-oceanside locale, the Shoppes at Carlsbad traded for about $98 per square foot, notably less than other recent mall sales in the region
By Nick Trombola September 24, 2025 5:20 pm
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Investment management titan Brookfield has unloaded a prominent shopping mall in Southern California for far less per square foot than some of its regional peers, despite the mall’s location near the ocean and the resilience of the national retail market.
A joint venture between Los Angeles-based Steerpoint Capital and San Mateo-based Steelwave paid $71.5 million for the 727,000-square-foot main portion of The Shoppes at Carlsbad, a 1.1 million-square-foot mall about 36 miles north of Downtown San Diego. The deal did not include the mall’s anchor tenants, such as Macy’s and JCPenney.
The development is a couple of miles off the coast at 2525 El Camino Real, near Interstate 5. Brookfield acquired the property for $170 million in 2015 and completed renovations in 2017. The Shoppes at Carlsbad currently has a 74 percent occupancy rate.
Spokespeople for the Steerpoint-Steelwave JV and for Brookfield did not immediately respond to a request for comment.
Archway Capital provided a $42.9 million acquisition loan toward the deal, $4 million of which is earmarked for improvements such as entrance upgrades, new common area seating and renovated restrooms. The deal is Archway’s largest loan transaction to date, according to the firm.
“This acquisition highlights our strategy of securing high-quality assets at a low basis in markets with undeniable strength,” Jack Steger, Steerpoint’s director of investment and development, said in a statement. “The Shoppes at Carlsbad combines irreplaceable real estate with powerful demographics, and we see tremendous opportunity to drive long-term value for both our tenants and the community.”
At $98.35 per square foot, Steerpoint and Steelwave snagged the property at a relative discount compared to other recent mall sales across Southern California. In one example, a joint venture of Pacific Retail Capital Partners, Lyon Living and Silverpeak in August paid $332.1 million, or $158 per square foot, for Macerich’s Lakewood Center in Lakewood.
Further, Stockdale Capital Partners paid $157 million, or $130 per square foot, for The Oaks in Thousand Oaks; and a joint venture between RCB Equities and Real Estate Development Associates paid $156 million, or about $142 per square foot, for Puente Hills Mall in the City of Industry.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
