The Rouse Co., which operates Faneuil Hall Marketplace in Boston, South Street Seaport in New York City and other well-known shopping venues, will manage the Irvine Co.'s Fashion Island mall in Newport Beach, the companies said Thursday.
The companies recently signed a 10-year management contract with options to renew. Rouse replaces Donahue Schriber, a Newport Beach developer that oversaw the recent renovation of the mall. How much Rouse will be paid was not disclosed.
Rouse, of Baltimore, has also worked for several years with the Irvine Co. to develop a big mall at the company’s Spectrum industrial park at the junction of the San Diego and Santa Ana freeways in Irvine. But the mall project has been delayed because the Irvine Co. has been unable to sign up enough department stores for anchor tenants.
Donahue Schriber is a developer of shopping centers and malls around Southern California, including two centers in Tustin that the company is developing for the Irvine Co.
Donahue Schriber officials say the company is no longer interested in managing the Fashion Island mall because it generally does not like to manage other firms’ properties on a long-term basis. And, the developer says, it’s busy with its other development projects, including the Irvine Co.'s Tustin Marketplace shopping center, which is still expanding.
Rouse, the largest publicly held developer in the nation, operates 78 malls and shopping centers.
It specializes, though, in splashy retail centers such as Faneuil Hall and South Street Seaport, in which old downtown buildings are renovated and filled with stylish shops that appeal to tourists as well as local residents.
Rouse will assume management of Fashion Island on Sept. 1. The company named Richard Oliver, the general manager of the company’s Owings Mills, Md., shopping center, to manage Fashion Island.
The 200-store Fashion Island, built in 1967, had been losing sales to the newer and glitzier South Coast Plaza mall in Costa Mesa for years. Both of the malls cater to affluent shoppers with stores such as Neiman Marcus at Fashion Island and Tiffany’s at South Coast Plaza.
The Irvine Co., a giant Newport Beach-based landowner, began renovating Fashion Island several years ago, and the new version recently opened.