We purchased Santa Fe Springs Mall in Santa Fe Springs (Los Angeles County), California in May 1998. Shortly after purchasing the property we also purchased a vacant Sears building on an adjacent parcel. Built in the 1980's this enclosed mall never reached full occupancy due to its layout and too few anchor tenants to support the interior mall tenants. Exacerbated by the closure of the Sears store, the property continued to decline and the lender foreclosed in 1995. After several unsuccessful attempts to sell the property at higher prices, the lender ultimately sold to us in 1998.
We converted the property from an enclosed mall format to a successful open air community shopping center. The interior section of the mall was gutted and reconfigured to accommodate larger anchor tenant spaces, which we leased to Office Max and Gigante Supermarket. The Sears building was demolished and we negotiated a long term ground lease with Walmart. We also added shop space facing the new Walmart and two pad buildings for a Sav-On drugstore and a McDonald's. Lastly, we terminated the lease of an under-performing cinema, replacing it with a new LA Fitness sports club. We sold the center in a single transaction in October 2003.