Westfield Santa Anita, a premier shopping destination in Arcadia, California, has been sold for $537.5 million, marking the highest price paid for a U.S. mall since 2018. The sale, facilitated by real estate investment bank Eastdil Secured, represents a significant shift in the U.S. mall landscape. Unibail-Rodamco-Westfield (URW), the Paris-based owner of the mall, confirmed the transaction as part of its strategy to divest its U.S. holdings and concentrate on its European portfolio.
The buyer, an established commercial real estate investor with other retail assets in Southern California, remains undisclosed. The sale price underscores the enduring appeal of prime retail properties like Santa Anita Fashion Mall, despite the challenges facing the broader retail sector. The mall’s strategic location near the renowned Santa Anita Park horse-racing venue and its strong tenant occupancy contributed to its high valuation.
URW’s decision to sell its entire U.S. portfolio, including 24 malls by 2023, reflects a broader trend of European companies reassessing their investments in the American market. The company aims to become a “focused, European pure-play,” according to CEO Jean-Marie Tritant. This strategic shift indicates a growing confidence in the European retail market and a desire to streamline operations.
Westfield Santa Anita, a 1.5-million-square-foot property, boasts a 96% lease rate and impressive sales figures exceeding $600 per square foot annually. These metrics highlight the mall’s continued success and its attractiveness to investors. The mall’s robust tenant roster includes prominent brands like Nordstrom, Zara, Lululemon, Macy’s, and H&M, further solidifying its position as a leading shopping destination in the region.
Westfield Santa Anita comprises 23 buildings, developed in phases between 1974 and 2009, showcasing a blend of established and contemporary architectural styles. The mall’s ongoing evolution and adaptation to changing consumer preferences have contributed to its sustained success. This sale signifies a vote of confidence in the long-term viability of well-managed, high-performing malls like Santa Anita Fashion Mall, even amidst the rise of e-commerce and shifting retail trends. The transaction underscores the resilience of premium retail spaces and the enduring value of physical shopping experiences. The sale of Santa Anita Fashion Mall represents a significant milestone in the evolution of the retail landscape.
