CARLSBAD, CA—Rouse Properties Inc. says it has spent $170 million to acquire Westfield Carlsbad, a 1.1 million square foot super regional enclosed mall. Rouse plan involves rebrand the center as The Shoppes at Carlsbad and execute a comprehensive renovation.
Improvements will include a complete interior make-over and the addition of a contemporary and engaging streetscape to accommodate high-volume restaurants, which bring together the indoor and outdoor elements. Rouse believes its plan will restore the center to a position of prominence within the prime retail landscape of the Carlsbad market.
"We couldn't be more excited to join the Carlsbad community," said Andrew Silberfein, president and chief executive officer of Rouse Properties. "We see a tremendous opportunity to apply our entrepreneurial national platform to reposition the property. As we move forward with this process, we will work in close coordination with City officials to ensure we deliver a product and retail experience that is unique for the marketplace and that the families in the community can be proud of."
The center is home to a strong existing lineup of 150 retailers such as Macy's, Forever 21, LOFT, Victoria's Secret, Vans, Panera Bread, and Peet's Coffee & Tea, and features high-quality entertainment and lifestyle tenants including a 12-screen Regal Cinemas with luxury seating and a state-of-the-art 24 Hour Fitness. Rouse expects its strategic renovation initiative to improve rental rates, occupancy, leasing and sales productivity, creating significant long-term value at the asset.
Conveniently located immediately off Interstate 5, the main north/south corridor in the state, the center is the only enclosed mall within a 15 mile radius and caters to an extremely dense and affluent trade area of approximately 500,000 people with an average income of $84,000. The center, centrally located in Carlsbad, one of Southern California's most picturesque, seaside resort cities that attracts nearly three million tourists annually, is also in proximity to the West Coast's only LEGOLAND, luxury hotels such as the Four Seasons and Park Hyatt, and world-class beaches and golf courses.
Silberfein added, "This strategic acquisition will be a perfect fit to our dynamic and growing California portfolio. We will apply our proven operating platform to improve the overall asset quality and retailer offering as we have successfully done throughout the country."
The acquisition was funded through the issuance of $140 million of preferred operating partnership units to Westfield.
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