Why Malibu Is Buffered From the Pandemic Punch

Integrated Capital Management is nearing ground breaking on a long-awaited outdoor mixed-use development in Malibu. Cross Creek Ranch has been decades in the making, and is the largest development approved in Malibu since 1991. While the pandemic has called many new developments into question, Integrated is only more bullish on the project and the market fundamentals.

“I have no concerns whatsoever; in fact, quite the opposite,” John Carrick, co-founder and managing principal of Integrated Capital Management, tells GlobeSt.com. “If we were delivering Cross Creek Ranch Malibu into the current environment, I might feel differently, but tenants will likely be taking occupancy during summer 2023 by the time construction and tenant improvements are completed. By then, we expect the world to be in a very different place.”

The project includes 70,000 square feet of retail, including 10,000 square feet of interior dining space, and 42,000 square feet of class-A office space. “Office and retail tenants alike have used the last year to reconsider the programming of their physical space and strategic locations,” adds Carrick. “Cross Creek Ranch offers a unique environment where tenants can improve their local customer-level interface while simultaneously reinforcing their brand on a global basis.”

The quality of the market and limited new construction also gives Integrated confidence in the market and the project. “Malibu is a coastal location with universal appeal that attracts millions of visitors each year on a regional, national, and international basis who want to enjoy the City’s world-renowned beauty and celebrity-filled atmosphere firsthand,” says Carrick. “Despite this consistent demand, however, there has yet to be a large scale open-spaced project which truly creates a modern outdoor lifestyle experience.”

Carrick expects the property will also create a micro-market environment or hub within Malibu. “Cross Creek Ranch, in combination with its proximate peers, will bring Malibu’s Civic Center submarket from an aggregate 150,000 square feet to approximately 220,000 square feet of retail and dining venues,” he explains. “This figure is exclusive of the 42,000 square feet of Class A office space which will provide a highly amenitized, best-of-class work environment to more than 150 employees.”

Integrated also has no plans to alter or change the vision of the property in response to the pandemic. This is largely due to the rigorous approval process that was completed just before the onset of the pandemic. However, the outdoor environment would have warranted few changes. “We would never jeopardize our final approval by proposing additional changes,” says Carrick. “That said, we could not have designed a project better suited to serve a post-COVID environment. The expansive open space and campus environment of both the office and retail sectors of Cross Creek Ranch Malibu allow for a curated, but socially distanced, experience.”