Is Capital Mall getting a new owner? Partnership shows interest, according to report
Capital Mall could be getting a new owner after its parent company, Starwood Capital Group, lost control of seven mall properties, including the west Olympia location, according to a report in The Wall Street Journal.
The Journal reports the loss of the malls is related to bonds Starwood issued in Israel and defaulted on during the spring. When a local ratings firm downgraded the debt earlier this year, it triggered an accelerated payment clause that also enabled the bondholders to seize control of the assets.
A partnership between Pacific Retail Capital Partners, based in El Segundo, Calif., and New York-based real-estate investment group Golden East Investors won a bidding contest among six parties to take over the malls, according to the newspaper.
Although the partnership won a bidding contest, the sale is still being negotiated.
“These properties are all prime examples of retail centers that serve a vital need in the community and will benefit from the tailored management approach that is a hallmark of Pacific Retail. We have the knowledge, expertise, and work ethic to make real change in these shopping centers quickly,” said Steve Plenge, Managing Principal for Pacific Retail Capital Partners, in a news release sent to The Olympian.
Capital Mall General Manager Kevin Johnston said this week the mall is now managed by Chicago-based commercial real estate company Jones Lang LaSalle, instead of Starwood Retail Partners, a division of Starwood Capital Group.
“There will be no noticeable impact for our tenants and customers,” he said. “We will continue to operate as normal.”
Capital Mall temporarily closed earlier this year because of COVID-19, but reopened in early June. Johnston said the movie theaters also are open again.
Recent store openings include Sephora, a cosmetics business, and Estileon, a store that sells shoes made in Mexico.
If you know of a retailer, restaurant, coffee shop or other business that is opening, closing, expanding, remodeling, or changing its focus, send an email to reporter Rolf Boone at rboone@theolympian.com.
This story was originally published October 2, 2020 at 5:45 AM.
