Pacific Retail JV Buys 2 MSF Los Angeles Mall

August 19, 2025

Retail Featured Investment Los Angeles More News West

Plans call for the property's transformation into a mixed-use destination.

Exterior nocturnal shot of The Shops at Palm Desert — Pacific Retail Capital Partners has purchased and redeveloped several shopping malls within the last couple of years, including The Shops at Palm Desert, a nearly 1 million-square-foot enclosed mall in Palm Desert, Calif. Image courtesy of Pacific Retail Capital Partners

Pacific Retail Capital Partners, Lyon Living and Silverpeak have purchased Lakewood Center, a 2 million-square-foot super regional shopping mall in Lakewood, Calif. The new owners plan to reposition the property into a mixed-use community hub.

A joint venture between Macerich and GIC previously owned the asset. Macerich had acquired Lakewood Center in 1975 for $160.1 million, according to Yardi Research Data. Then, in 2015, the firm sold a 40 percent interest in the property to GIC, in a $1.5 billion transaction that involved four regional malls.

The same year, the retail property became subject to two CMBS loans totaling $410 million originated by Deutsche Bank, with Wilmington Trust serving as trustee. Both notes are due to mature in January 2026.

Completed in several phases from 1952 to 2012, Lakewood Center encompasses 42 buildings, the same source shows. The one-, two- and three-story structures are spread across a 145-acre site.

Located at 500 Lakewood Blvd. in a densely populated area, the retail center is surrounded by more than 10 colleges and universities within a 15-mile radius. Lakewood Center attracts more than 22 million annual visitors, ranking third in California and sixth nationally for foot traffic, and generates more than $1 billion in annual sales.

Anchored by Costco, Target, Macy’s and Best Buy, the center features a diverse mix of regional and national retailers such as Aldo, Applebee’s, Burlington, Claire’s, Dollar Tree, Foot Locker, JCPenney, GameStop, ULTA Beauty and Spencer’s, among others.

The revitalization of a historic retail property

Lakewood Center has played a central role in the community since opening in the 1950s, four years before the city’s incorporation. Over the decades, the property has evolved alongside the cultural and demographic shifts of Southeast Los Angeles, becoming one of the most heavily trafficked malls in the country.

The ownership team plans to initiate a master planning process and will engage with local stakeholders and city officials to align future redevelopment with community priorities. A comprehensive master plan will guide the transformation of the legacy retail site into a mixed-use environment. The project will combine existing retail with new residential units, wellness amenities, dining options, entertainment venues and green spaces.

Designed to support pedestrian flow, the redevelopment will blend together current retail trends, modern living and lifestyle features. Lyon Living will lead the residential and experiential components, while Silverpeak will provide strategic oversight and capital investment.

PRCP previously acquired The Shops at Palm Desert, a nearly 1 million-square-foot enclosed mall in Palm Desert, Calif., and Bridgewater Commons, a 1.2 million-square-foot mall in Bridgewater Township, N.J. The company transformed both locations into mixed-use destinations.