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The future of another aging Orange County enclosed mall is up in the air.
The Ohio-based landlord of Westminster Mall is trying to offload its portion of the 51-year-old shopping center, potentially putting into jeopardy plans to overhaul the mall into a mixed-use hub with more than 1,200 apartments and homes.
Mall landlord Washington Prime Group (WPG) announced plans last month to purge its portfolio following the company’s 2021 Chapter 11 bankruptcy protection filing. A WPG spokesperson told the Business Journal that it sold half of its national portfolio in the past year.
The other half of the portfolio, which includes its stake in the mall anchored by JCPenney and Target, is already on the market or will be listed soon.
“WPG is reducing its headcount to reflect the downsized organization,” the spokesperson continued.
Other WPG malls anticipated to be sold off include Scottsdale Quarter in Scottsdale, Arizona, Gateway Shopping Center in Austin, Texas, and Polaris Fashion Place in Columbus, Ohio.
WPG was founded in 2014 and is based in Columbus, Ohio. The retail landlord also has an office in Carmel, Indiana.
Bolsa Pacific Project Up in the Air
WPG’s sale of its stake could impact a large chunk of the mall slated for a major makeover by Irvine-based Shopoff Realty Investments.
In the summer of 2022, Shopoff Realty paid roughly $95 million for a 26-acre parcel of the mall, which included Macy’s, the former Sears space and an adjacent parking lot.
The Irvine firm has proposed building a multifamily development for its site, including commercial and residential uses. The project, called Bolsa Pacific, specifically called for 1,065 rental units, 102 for-sale townhomes, a 175-room hotel and 25,000 square feet of retail space, including a food hall.
Bolsa Pacific would also include 2.5 acres of green space, with an amphitheater, dog park, food kiosks and pickleball courts. Orange-based architecture firm AO and landscape architect MJS in Newport Beach were heading the design teams, Shopoff said two years ago. Plans for Bolsa Pacific have not been updated since 2023.
Shopoff Realty bought its stake in Westminster Mall in separate transactions: a $46.3 million acquisition of 14.1 acres in July 2022, which included the former Sears store, and a second deal for $49 million.
The second transaction closed in August 2022 and was a leaseback deal for an 11.9-acre parcel that included anchor department store Macy’s.
Shopoff Realty, whose chief executive is Bill Shopoff, declined to comment for this story.
Last year, Shopoff Realty earned a major victory when it won approvals from the city of Huntington Beach and California Coastal Commission to develop 29 acres of near coastal property into a mixed-use development. Dubbed Magnolia Coast, plans call for more than 200 houses, a 215-room hotel and 19,000-square feet of retail.
Evolution of Westminster Mall
The Westminster Mall opened in 1974 and at its peak counted 1.2 million square feet of retail on 90 acres.
It is now the 18th largest shopping center in Orange County, with $120.1 million of taxable income for the year that ended June 2024 – a 1.6% year-over-year decline, according to Business Journal data.
Last year’s sales numbers are substantially lower than what the mall reported in the early 2010s, when it brought in almost $270 million.
WPG, prior to last week’s decision but after it had filed for bankruptcy protection, planned to pursue its own redevelopment of Westminster Mall.
The retail landlord failed to close on a contract to sell a 43-acre portion of the mall to Taylor Morrison Corp. for $160 million. The homebuilder initially planned to use the parcel to build houses for sale.
Kaiser Permanente bought a 10-acre parcel at the mall in 2020, with plans to build a new medical office facility. A timeline for that project has yet to be disclosed. n