Carson, Calif. — Macerich (NYSE: MAC) and Simon Property Group (NYSE: SPG) have formed a 50/50 joint venture to develop Los Angeles Premium Outlets, a new outlet mall in Carson, located 13 miles south of downtown Los Angeles.
The first phase will span 400,000 square feet, and the second phase will include 166,000 square feet.
“Our city is thrilled that this exciting project is moving forward,” said Carson Mayor Albert Robles in a prepared statement. “We see this high-quality outlet project as one that will add value to our community for many years to come, attracting locals and tourists from all over the world.”
The outlet mall will feature 2,500 linear feet of frontage along the Interstate 405 Freeway. Roughly 515,000 cars pass the site each day along I-405 and the Interstate 110 Freeway. The site has roughly 2.5 million residents within a 10-mile radius and is situated about 11 miles south of Los Angeles International Airport (LAX).
As currently planned, the project’s shops and restaurants will be elevated above street level and sit atop a ground-level parking deck. Site work is expected to begin immediately.
Macerich and Simon plan to open the Los Angeles County property in fall 2021. No tenants have been announced.
Macerich currently owns 52 million square feet of real estate consisting primarily of interests in 48 regional shopping centers, according to the company. The retail REIT is based in Santa Monica, Calif.
Macerich’s stock price closed on Monday, Sept. 10 at $55.98 per share, up from $54.39 a year ago.
Simon Property Group has several outlet malls in its development pipeline. These include the Denver Premium Outlets, Queretaro Premium Outlets in Mexico, Malaga Designer Outlet in Spain and Cannock Designer Outlet in the United Kingdom.
The Indianapolis-based company recently delivered the 424,000-square-foot Premium Outlet Collection Edmonton International Airport, and is currently redeveloping the Toronto Premium Outlets.
Simon’s stock price closed on Monday, Sept. 10 at $182.87 per share, up from $160.32 this time last year.
— John Nelson