Santa Monica Place, once the hub of Macerich Co.’s local operations, has been taken over by commercial real estate firm Prism Places. The 527,000-square-foot outdoor retail center, struggling with declining revenues, is now under Trigild’s control after Macerich defaulted on its loans.
Founded CEO Stenn Parton sees an opportunity to restore the shopping center to its former glory. “We’re motivated and inspired to bring back community spaces for this community,” he said. Prism Places has experience revitalizing distressed assets, particularly in Southern California, and plans to balance local with global brands for retail and dining options.
The new management aims to optimize internal design, utilize locally produced events, and attract visitors through pop-up attractions on lower levels. Santa Monica Place was originally designed by Frank Gehry and underwent a $265 million renovation in 2010. Macerich has been struggling financially, leading to a significant vacancy rate of almost 70% and reduced sales.
The shopping center’s struggles come amid broader economic challenges facing Santa Monica. The city is operating with a structural deficit and recent sales receipts show an 11.1% decline compared to the same period in 2023. Local businesses have been impacted by the lack of foot traffic, which has driven daytime population to 60% of pre-pandemic levels.
However, City Hall remains optimistic about an economic turnaround, with plans for a new hotel and increased housing construction in Downtown Santa Monica. Prism Places’ appointment as manager represents a significant step towards addressing Santa Monica Place’s financial troubles.
Source: https://smdp.com/business/new-managers-for-santa-monica-place-prism-places-hopes-to-shine-a-positive-light-on-troubled-property