Mall Provides Compelling Repositioning Opportunity
A tremendous amount of capital targeting value-add opportunities for well-located retail assets coupled with tenant demand made Chico Mall a sought-after opportunity and competitive bidding process.
CHICO, CA—Chico Mall, a 503,710-square-foot regional mall, is within walking distance of Chico’s largest master-planned community, Meriam Park. This 270-acre planned development will mix new urbanism with traditional neighborhood design. In anticipation of the project and possible surrounding development, the mall recently sold to Ethan Conrad Properties for an undisclosed price.
Chico Mall is on East 20th Street in the epicenter of Chico’s retail corridor. Situated on nearly 39 acres of prime real estate fronting Highway 99, the mall occupies one of the biggest and most visible retail sites in Northern California.
“We continue to see a tremendous amount of capital targeting true value-add opportunities for well-located retail assets,” Nicholas Bicardo, Newmark Knight Frank vice chairman, tells GlobeSt.com. “The market fundamentals, coupled with the underlying real estate and tenant demand, made this a highly sought-after opportunity and competitive bidding process.”
The center is anchored by Dicks’ Sporting Goods, JCPenney and Forever 21, and home to more than 30 tenants, as well as a former Sears that is currently vacant. Chico Mall benefits from a strong 25-mile demographic that includes a population of 244,473 with a $67,331 average household income, GlobeSt.com learns.
Bicardo, executive managing director Thomas Dobrowski and managing director Brandon Rogoff represented the undisclosed seller in this transaction.
“Chico Mall was renovated in 2012, but still provides for a great deal of value-add potential. It is the most dominant regional center within a 70-mile radius. The existing vacancy and site control, coupled with the fact that this center is the preferred destination for retailers looking to expand in the region, made this a very compelling repositioning opportunity,” said Bicardo.
In November of last year, the vacant Sears building became a disaster recovery center offering resources available to homeowners, renters and business owners who sustained damage as a result of the Camp Fire. The center was jointly operated by the California Governor’s Office of Emergency Services and the Federal Emergency Management Agency, GlobeSt.com learns.