Unibail-Rodamco-Westfield Sells 1.1 Million-Square-Foot Westfield Mission Valley Shopping Center in San Diego for $290 Million

by Hayden Spiess

San Diego — French investor Unibail-Rodamco-Westfield (URW) has sold Westfield Mission Valley, a 1.1-million-square-foot retail center in San Diego, for $290 million. The center was developed on two parcels of property; URW sold the eastern portion to Lowe and Real Capital Solutions, while Sunbelt Investment Holdings Inc. bought the smaller western parcel.

The Westfield Mission Valley shopping mall, the eastern part of the property, was originally built in 1960 on a 41-acre site. The center currently offers 73 shops, including Target, Nordstrom Rack, Macy’s Home, Michael’s, Bloomingdale’s Outlet and a 24-Hour Fitness, as well as restaurants such as Yard House, Outback and Buffalo Wild Wings. The center also includes the AMC Mission Valley 20 movie theater.

The western portion of the asset features a Trader Joe’s, Marshalls and variety of smaller restaurants and retailers.

The property is located opposite the San Diego Trolley’s Mission Valley Center Station. The mall is also accessible to thoroughfares such as I-8, I-805 and Highway 163. 

Lowe and Real Capital Solutions plan to redevelop their portion of the property into a walkable, transit-oriented, mixed-use village. Lowe will lead the redevelopment project. The team plans to refresh the existing retail and add complementary uses such as multifamily residential to the expansive property. 

A move earlier this week by the San Diego City Council paves the way for this reuse opportunity, according to The San Diego Union-Tribune. The council amended the Mission Valley Community Plan, removing the shopping center from the 40-year-old document. The action means the land is now zoned for mixed-use, meaning it could feature a combination of office space, research labs, shops, warehouses and multifamily residences.

According to Lowe and Real Capital Solutions, a recent survey reported that the Westfield Mission Valley center received approximately 9.8 million visitors over a 12-month period.

“Mission Valley center has a solid position in the market with many popular retailers and restaurants,” explains Joel Mayer, executive vice president and head of Retail reVision at Lowe. “We intend to build on its strengths and update the property by devoting capital to a host of improvements including creating more inviting public spaces and plazas to encourage gathering and increase outdoor dining areas.”

Lowe has chosen Dallas-based Centennial to manage the converted property, as well as provide marketing and accounting services. A partnership consisting of Centennial and Retail Insite will manage the leasing services for the project.

The shopping center is located one mile west of Town and Country resort, a 675-room, 40-acre property also owned by Lowe. The company renovated and repositioned the resort in 2020. 

Lowe’s other San Diego projects include a public workspace in downtown San Diego called IDEA1, as well as a 1.7 million-square-foot county operations center. Lowe is also managing the development and leasing of the office portion of WEST, a mixed-used tower in downtown San Diego that is slated for completion in early 2024.

— Channing Hamilton

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