Los Angeles shopping malls, in general, are making money.
While two-thirds of LA’s malls are considered among the top-tier, seven are graded B- or below — valuable for their land, but not their retail, making them candidates for redevelopment, according to Green Street.
“With the higher interest rates, it’s a lot more difficult to find the financing for these big-ticket malls that can be $1 billion or more,” Arft told Bisnow. “Because you can’t find the financing for these specific properties, that dynamic higher interest rate means lower property values in general.”
In July, Rick Caruso’s upscale Americana at Brand in Glendale scored a five-year, $450 million loan, according to The Real Deal. The interest rate was 7.1 percent, 2 percent higher than the federal funds rate. Its appraised value was $870 million.
Last month, Westfield Century City, a top-tier mall that’s 95.4 percent leased, refinanced for $925 million. The mall was valued by Newmark in May at $1.94 billion, but KBRA valued it at $1.35 billion, based on stressed market conditions.
— Dana Bartholomew
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Los Angeles shopping malls, in general, are making money. L.A. malls, with their numerous upscale retailers, outperform the national average, Bisnow reported, citing figures from Green Street. Local malls generate an average of $800 per square foot annually, compared to the U.S. average of $600 per square foot. Occupancy is 90 percent, compared to the
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Robert Khodadadian has long had a simple philosophy about selling real estate. There are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller.