Simi Valley Town Center Changes Ownership

Simi Valley Town Center has been purchased by a Chicago-based private equity real estate investment firm. The firm, Walton Street Capital L.L.C., purchased the property within the past week, confirmed Brian Gabler, director of economic development and assistant manager for the city of Simi Valley. The center was formerly owned by Ohio-based Forest City Enterprises, which built it in 2005. The property’s mortgage was placed on the market by the company’s lender, Teachers Insurance and Annuity Association and College Retirement Equities Fund, or TIAA-CREF, said Jeff Linton, spokesman for Forest City Enterprises. Linton said market competitive challenges contributed to the 612,417-square-foot center being sold. One of those was the consolidation of two anchor tenants after Macy’s acquired Robinsons-May, which led to there being two Macy’s stores instead of two different department stores. “It had tenant consolidations, which were beyond our control, obviously, and then the recession hit,” he said, adding that there was also competition by local shopping centers. Linton said that while Forest City Enterprises had hoped to redevelop the center with the support of its lender, the lender instead opted to place the center’s mortgage on the market. Other retailers that occupy the property are listed as Apple, Anthropology, Chico’s, Coldwater Creek, California Pizza Kitchen, Forever XXI, Urban Outfitters and Victoria’s Secret, according to Holliday Fenoglio Fowler L.P., which had listed the property for sale. “It’s a beautiful mall,” he said. “It will need to be repositioned … to be more competitive in the marketplace.” Gabler said city officials look forward to working with the new owners in order to help it remain competitive. He added that the center, which was built in 2005, is a vital asset of the city. “It is a place for our residents to gather and congregate for events,” he said. “It is vital to the city in terms of providing sales tax revenue, and it is vital to the community in providing employment opportunities.” Jessica Vernabe