CenterCal Properties, DRA Advisors Snap Up Long Beach Mall for $145M

Who could’ve predicted that malls would become one of the hottest tickets in Southern California real estate investment?

CenterCal Properties and private equity firm DRA Advisors are the latest to extend the string of high-dollar retail investment deals, paying $145 million, or about $167 per square foot, for the 870,000-square-foot Long Beach Towne Center. Vestar developed and sold the mall, according to CoStar. 

The joint venture and the City of Long Beach are together planning a major overhaul of the property at 7575 Carson Boulevard, including upgraded lighting, signage, pedestrian walkways, landscaping, public art and parking. That overhaul extends to tenants and guest experiences as well, with the team focusing on chef-driven and fast-casual dining, curating retail tenants and adding boutique fitness, wellness and community spaces to the 26-year-old mall. 

“Long Beach Towne Center is already a cornerstone of the community, and we see tremendous potential to make it even more dynamic and relevant for today’s consumer,” Jean Paul Wardy, CenterCal CEO, said in a statement. 

Physical retail’s strong fundamentals, and limited development pipeline, have driven many investors to snatch up physical retail around Southern California in recent months. Pacific Retail Capital Partners, Lyon Living and Silverpeak paid $332 million for Macerich’s 2.1 million-square-foot Lakewood Center in August, and Regency Centers put down $357 million for five retail properties that are nearly fully leased at Rancho Mission Viejo in Orange County.

Nick Trombola can be reached at ntrombola@commercialobserver.com.