Merlone Geier Partners, a private real estate investment company, has purchased the long overlooked 21-acre retail business property at 1855 41st Ave. Capitola City officials welcomed the new potential and possibilities for investment in the property that this change in ownership could bring. The City previously committed $1 million toward a refurbishing they felt the mall needed.
The Capitola Mall was built in 1977 with an expansion 12 years later in 1989. It is the only enclosed shopping mall in Santa Cruz County. Former Anchor stores Gottschalks and Mervyns went bankrupt and were lost to the recession. Marie Callender’s restaurant closed in 2009 and has not reopened under another owner.
The purchase by Merlone Geier Partners involved parcels in the mall that included 100 spaces for specialty stores and restaurants owned by Macerich, and one anchor store, Kohls Department Store. The sale did not include parcels owned by the other anchor stores Target, Macy’s and Sears.
According to Santa Cruz County Assessor’s Office, the assessed value of the Macerich parcels exceeds $64 million however the mall purchase price was not disclosed. Current zoning allows a variety of uses including a hotel and housing.
On their website Merlone Geier Partners describes the property as: Benefits from location on the most trafficked road in Santa Cruz County, 41st Avenue, attracting local and out of town visitors • Stands out as the only enclosed shopping center in the county with the nearest competing center 30 miles away • Draws from the neighboring city of Santa Cruz, home to UC-Santa Cruz with an enrollment of nearly 18,000 students. It also describes that within a 5-mile radius there is a population of about 125,000.
The company has properties in California, Oregon and Washington with one of the largest being Metro Center in downtown San Diego. Several of their properties are mixed-use developments.
