Major Mall Owners in Orange County Unleash $8 Billion Overhaul

Orange County's shopping malls are in the midst of an $8 billion transformation. Owners of eight malls throughout the county are strategically redeveloping vacant anchor stores and underutilized parking spaces to create new residential areas, dining establishments, and entertainment venues, as reported by the Orange County Business Journal.

A Multibillion-Dollar Face-lift

City filings, estimates, and insider sources suggest that the collective construction value of these mall renovations is approaching a staggering $8 billion. Over the past year, approximately 4 million square feet of mall retail space has been bulldozed, setting the stage for ambitious projects that anticipate the construction of 13,000 homes over the next decade. The goal is to retain 6 million square feet of retail stores, a reduction from the nearly 8 million square feet that existed before the commencement of these construction endeavors.

Land Value Trumps Existing Structures

According to Bill Shopoff, CEO of Shopoff Realty Investments based in Irvine, "For these redevelopment opportunities, the land has more value than the structures that are on it." The focus is on redevelopment, intensifying land use, and maximizing sites with robust existing infrastructure.

Major Players in the Revitalization Efforts

Leading the pack is Irvine-based Related California, with its $3 billion, 42-acre project, Related Bristol. This endeavor aims to transform the 460,000-square-foot Metro Town Square in Santa Ana, introducing 3,750 apartments, a senior complex, a hotel, and a substantial retail and dining space.

A Wave of Makeovers Across Orange County

Los Angeles-based Lowe Enterprises is investing $500 million to rejuvenate the MainPlace Mall in Santa Ana, while Newport Beach-based Irvine Company has initiated a 79-acre revamp of The Market Place, making room for 1,261 homes. San Francisco-based Merlone Geier Partners is approved to replace the 68-acre Laguna Hills Mall with a $600 million Village at Laguna Hills. Meanwhile, Merlone Geier plans a $650 million overhaul of Buena Park's largest mall, incorporating 1,302 homes. Simon Property Group intends to redevelop part of the 74-acre Brea Mall with a 380-unit apartment building and an outdoor plaza. Lastly, C.J. Segerstrom & Sons is set to transform South Coast Plaza Village in Santa Ana into the new Village Santa Ana, with an estimated project value approaching $1.5 billion.

In summary, Orange County's malls are undergoing a profound metamorphosis, with a focus on revitalizing underutilized spaces, maximizing land value, and ushering in a new era of residential, commercial, and recreational opportunities. The scale and scope of these makeovers signal a major transformation for the county's retail and living spaces, promising a vibrant future for Orange County.