Buyer Envisions Revamping of Huntington Mall

By MELINDA FULMER

Dec. 20, 1996 12 AM PT

SPECIAL TO THE TIMES

HUNTINGTON BEACH — Regional mall operator Macerich Co. said Thursday it has purchased and will renovate the long-suffering Huntington Center Mall, one of the first covered malls in California.

The new owner plans to tear down the vacant Broadway store at the mall and build a 20-screen, 95,000-square-foot theater complex, more restaurants and specialty shops. So far no new tenants have been lined up, but the company said it is in negotiations with several theater operators.

The Huntington Beach center is the latest of several older retail centers in Orange County that have been targeted for redevelopment in recent years in the wake of slumping sales. Most of these renovations involve bringing in entertainment-oriented tenants, such as movie theaters and restaurants.

Major retailers at the center include Montgomery Ward, Burlington Coat Factory, a Barnes & Noble bookstore, Circuit City, Staples office supplies and Mervyn’s Department Store.

As part of the rehabilitation, Macerich will likely relocate an adjacent Circuit City store to a larger site within the mall and the Staples store may take over Circuit City’s current building, said Arthur Coppola, Macerich president.

The Santa Monica-based company, a real estate investment trust, hopes to submit redevelopment plans to city officials in the first quarter of 1997. It declined to reveal the purchase price for the property.

The aging mall had fallen on hard times. Although the center is 80% occupied, its small inside shop space is 40% vacant. The Broadway had vacated its store earlier this year. JCPenney left the mall years ago. Huntington Beach officials say they hope the renovation will allow the city to regain some of the sales tax revenue lost in recent years.

“It can’t get any worse than it has been,” said City Councilman Dave Sullivan. This year the center is expected to generate only $1.1 million in revenue for the city, down nearly 40% from its peak.

Macerich, the mall’s manager for several years, purchased the center from MCA Huntington Associates LP, a partnership of pension funds headed by Chicago-based LaSalle Partners.

Huntington Center was one of three purchases totaling $125.1 million that Macerich announced Thursday. The company also said it purchased an 882,000-square-foot mall in Fresno and an 808,000-square-foot mall in Ventura.

Several other local malls have been targeted for major alterations.

Earlier this year, the owners of Buena Park Mall began work on a $30 million redevelopment that includes plans for a theater and a food court.

Washington-based Mills Corp. is moving ahead with plans to level The City shopping mall in Orange and convert it into an outlet mall with a 30-screen theater.

Last year, Anaheim Plaza was knocked down to make way for a new center anchored by Wal-Mart. In 1994, Laguna Hills Mall completed the last stage of its renovation, which included a new look and new tenants.

Macerich owns 15 malls in California, including Lakewood Center Mall in Lakewood, which recently completed a renovation.

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Many Malls

Santa-Monica based Macerich Co., which has acquired the Huntington Center Mall, also owns 13 other California malls and seven in other states. The California properties:

SOUTHERN CALIFORNIA

* Lakewood Center Mall, Lakewood

* Bristol Mall, Santa Ana

* Panorama Mall, Panorama City

* Villa Marina Marketplace, Marina del Rey

* Marina Marketplace, Marina del Rey

* Buenaventura Mall, Ventura

CENTRAL CALIFORNIA

* Fresno Fashion Fair, Fresno

* Vintage Faire Mall, Modesto

NORTHERN CALIFORNIA

* The Mall at Northgate, San Rafael