RCB Equites JV Lands $115M for Iconic LA Mall
RCB Equities and Real Estate Development Associates LLC have secured a $115 million loan to acquire the 1 million-square-foot Puente Hills Mall in City of Industry, Calif. The partners plan to redevelop and revitalize the mostly empty property made famous in the 1985 film “Back to the Future.”
Hankey Capital provided the non-recourse, three-year floating rate financing in a deal arranged by JLL. Managing Director Mark Wintner led the JLL Capital Markets Debt Advisory team.
The joint venture purchased the mall from Kam Sang Co. of Arcadia, Calif. Kam Sang had acquired it in 2014 for $100 million, public records show.
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While they did not disclose specific plans for the mall, RCB Equities and REDA noted they are committed to revitalizing the property and plan to work closely with the City of Industry to formulate a redevelopment plan that aligns with the city’s long-term vision.
Mall redevelopments have become more common in recent year as owners of struggling enclosed retail shopping centers convert their properties to mixed-use or lifestyle centers, often adding more experiential offerings, health and wellness facilities or multifamily components. Others incorporate office space, hotels or self-storage facilities. In Greensburg, Pa., The Cordish Co. redeveloped a former department store at the Westmoreland Mall into a casino.
Back in time
Puente Hills Mall occupies 56.4 acres at 1600 S. Azusa Ave. in the Gateway Cities submarket of eastern Los Angeles County, south of Pomona Freeway. Downtown Los Angeles is some 21 miles northwest.
A key scene in the “Back to the Future” movie was shot in the mall’s parking lot, which was doubled as the Twin Pines Mall, where Marty McFly traveled back to the future in a DeLorean time machine. A JC Penney store was clearly visible in the background but that chain retailer is long gone, along with Macy’s, Sears and many other stores.
The mall opened in phases between 1974 and 1975; at the time, it housed 125 stores and services across nearly 1.2 million square feet. However, the retail property only had about 10 tenants in late December, according to dailymail.com. Current tenants include an AMC Theater, Round 1 entertainment and bowling center and Champs retail store.
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