This Element Is Another Draw for Retail Centers

Ruig: “A lot of people are doing this; they’re getting people out from their computer screen and shopping again.”

LAGUNA HILLS, CA—In addition to its rebranding and renovation of Laguna Hills Mall here, C.W. Driver Cos. is working on a retail project in Northern California with a water-park feature, project executive Paul Ruig and project manager Jamie Macartney tell GlobeSt.com. The builder has begun construction for Five Lagunas , which includes the redevelopment of Laguna Hills Mall . The center’s rebranding to Five Lagunas pays homage to the five towns situated in close proximity—Laguna Beach, Laguna Canyon, Laguna Hills, Laguna Niguel and Laguna Woods. Plans for the 68-acre site include 300,000 square feet of newly built-out retail space, 45,000 square feet of retail pad construction and extensive interior and exterior renovations, which will upgrade and modernize the shopping center. Tentatively scheduled to complete summer 2018, the 846,885-square-foot lifestyle center will be completely transformed to include an improved shopping, dining and entertainment experience. We spoke exclusively with Ruig and Macartney about the project and other retail redevelopment projects the company has in the works. GlobeSt.com: What is unique for you about Five Lagunas? Macartney: Laguna Hills Mall has been in existence since the 1960s; Sears Roebuck was its first tenant. It’s an indoor mall anchored by JCPenney and Nordstrom Rack . Just down the road is Mission Viejo Mall , and just to the north is the newer outdoor urban-living theme of Irvine Spectrum , a completely outdoor center. Five Lagunas is trying to link the two. There’s an aging population next door in Laguna Woods , but there are also young tenants in the area. There will be an interior with anchors and another three-story portion with a luxury movie theater, restaurants and a park. Ruig: They’re trying to bring the outside in; there’s a glazing component to connect the inside to the outside so they can keep those sections open during the day and provide natural ventilation through there. Residents of Laguna Woods, which is the old Leisure World , are there all the time exercising and walking around. This center is answering to both Millennials and the aging population.

Macartney: “They’re working to finalize the design, making sure it works not only with their pro forma, but also with the community and the city.”

GlobeSt.com: What does the redevelopment of this property say about the Laguna Hills retail market? Ruig: I actually live about five minutes away, and it’s neat to watch as you drive north on the 5, at the El Toro connector exit—if you go east—they’ve been redeveloping that for the better part of eight to 10 years, and they’ve really dressed up that area. To the west, where the mall is, was a little long in the tooth. That mall was aging, and it had tried to work in its current configuration for many years. Now there are hospitals and medical office there—it’s the perfect location, and it’s answering to both needs, young and old. There’s a significant amount of development happening in those market-rate apartments nearby and another 1,000 units right next store. GlobeSt.com: How much retail redevelopment activity has been taking place in Laguna Hills, and how much do you anticipate for the future? Macartney: Laguna Hills Mall is one of the capstones to Laguna Hills, and for the better part of the last decade they have been redeveloping retail corridor. This is the other end of that spectrum, as opposed to thhe other side of freeway where there are a lot of big-box retailers and some smaller guys. This is trying to mold both of those, some larger and some smaller. Once we start knocking down buildings and throwing up steel, the leasing will pick up there.

Five Lagunas aims to appeal to both Millennials and the aging population in the surrounding areas.

Ruig: We’re doing a mall in Northern California: Hillsdale Mall in Hillsdale. People can shop from home, so they really have to draw you in. There’s going to be a water park there, and it will be exciting for children to play in the water at a mall; it will be a real destination. A lot of people are doing this; they’re getting people out from their computer screen and shopping again. GlobeSt.com: What else should our readers know about this project? Macartney: Developer Merlone Geier bought the property from Simon Properties a few years ago and has been working to get their vision in line with city of Laguna Hills and make sure the community is involved in that project. They’re working to finalize the design, making sure it works not only with their pro forma, but also with the community and the city. They have a vision for now and 20 years forward.