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PALM BEACH MALL: TROUBLED PAST TURNS TO BRIGHT FUTURE
The Palm Beach Mall was once an iconic 84 acre regional retail mecca boasting big name department stores and first class retailers. Located right on Interstate 95, the Mall enjoyed the advantages of great demographics, unsurpassed visibility and easy access. Despite its proud history, the Mall faltered, and when redevelopment attempts stalled, it closed in 2008. Orix Capital Markets, as special servicer, took over the main portion of the Mall while Macy's and Dillard's, owners of their own parcels, shuttered their stores. The splintered ownership kept many potential developers at bay. Sadly, the Palm Beach Mall became a complicated puzzle that defied solving.
When Eastern principal Brian Kelly was introduced to the Mall, he immediately recognized the opportunity and acted quickly to acquire first the Dillard's parcel and eventually the rest of the Mall property. As early as August of 2010 Eastern entered into agreements to control Dillards and then went to work on the other parcels. Eastern then teamed with New England Development and together they continued pursuit of a redevelopment plan that would work for the site and the community. The final piece fell into place when Lubert-Adler joined the team as an equity partner. Fourteen months after Eastern took hold of the project, the Partners completed the assemblage, closing on all interests in October of 2011.
The Partnership has unveiled bold and creative plans to redevelop the property into an exciting fashion outlet center with adjacent power strip containing up to 1 million square feet of dynamic new retail space. With a grand opening expected in October of 2013, the Palm Beach Outlets will restore this once popular site to its iconic status as a retail destination.
 Palm Beach Mall Site Plan
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CARRILLO PLAZA, SANTA BARBARA, CA: EASTERN STRIKES LANDMARK DEAL TO REINVIGORATE SITE
Carrillo Plaza, a 20,000 s.f. shopping center located within two blocks of the main shopping district of Santa Barbara is undergoing a dynamic transformation thanks to some innovative work by the Eastern team. Stigmatized by unresolved contamination issues, the underutilized site languished for years, frustrating redevelopment efforts and frightening away financing sources. Where others saw insurmountable risk, Eastern saw potential. After purchasing the Note on the Property, Eastern negotiated a groundbreaking agreement with the Regional Water Quality Control Board to provide immunity to future owners for the contamination that had hampered the property for so long. It was the first such agreement entered into under the California Land Reuse and Revitalization Act with a note holder. With the remediation liability capped, Eastern then proceeded to take ownership of the property and jump start the redevelopment process. Its first new tenant, Starbucks, is scheduled to open in a few short weeks on the busy corner of West Carrillo and De La Vina Street.
For Carrillo Plaza, the stigma is gone. Thanks to an unprecedented partnership forged by Eastern with the regulatory authorities, the property has been revitalized and will become a vibrant part of a bustling shopping district.
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INNOVATIVE NEW SUPERMARKET, CHELMSFORD, MA
Eastern was delighted to celebrate the recent opening of the new Stop & Shop Supermarket at Eastern's property located at 299 Chelmsford Street, Chelmsford, Massachusetts. After years of permitting delays and litigation, the new 72,000 s.f. store opened just in time for the holidays. Featuring new amenities designed to improve the customer shopping experience such as Stop & Shop's first ever in-store nutritionist, supervised child play area, convenient online ordering and curbside pickup, and innovative in-store shopping tools designed to increase convenience and savings for shoppers, the store debuts a fresh new look for Stop & Shop. Eastern congratulates and applauds Stop & Shop for its perseverance and innovation and is proud to have partnered with it at this site.
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RECORD SETTING SALE FOR EASTERN
Earlier in 2011, Eastern and its partners sold a newly developed Wells Fargo bank branch located at 1129 North Sepulveda Boulevard, Manhattan Beach, CA to a private investor. The 4,000 square foot building which sits on a 25,000 s.f. hard corner parcel, sold for more than $1,900 per square foot, believed to be one of the highest price per square foot transactions in California in 2011. A former contaminated gas station property, the Wells Fargo building was designed and constructed to achieve LEED gold certified status. The building features a light harvesting system that reduces energy usage by 20%, recycled interior treatments and surfaces and water - saving fixtures, bike racks, and preferred parking for low emission vehicles. This high quality of construction along with the property's high profile and desirable location allowed Eastern and its partners to capitalize on market momentum at the right time and drive the price to record levels.
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CONTACT US
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Eastern Real Estate LLC
120 Presidential Way
Woburn, MA 01801
(781) 926-6400
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Eastern Real Estate LLC
201 W. Montecito Street
Santa Barbara, CA 93108
(805) 845-5000
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For questions or other investor relations matters, please contact |
