Buyer Sought for Mission Viejo’s Under-Performing Kaleidoscope

The Kaleidoscope, a distinctive “shoppertainment” venue in Mission Viejo, has been quietly put up for sale.

The center is a stylish, compact multistory home for tenants like Zany Brainy, Edwards movie theaters, Burke Williams Spa and Crunch Fitness. It’s similar in concept to Triangle Square in Costa Mesa--and has a similar track record.

As with Triangle Square, Kaleidoscope has failed to meet developers’ expectations.

Industry analysts say the center may simply have been ahead of its time. While densely built projects thrive in West Los Angeles and elsewhere, some analysts felt Kaleidoscope’s forward-looking design may have hindered its progress.

Although Orange County is growing denser, the area remains more suburban than urban. Shoppers still prefer retail centers with vast parking lots that allow them to walk directly into a store, rather than parking in a multilevel garage at a retail center.

“They’re just spoiled,” said Wally Limburg, a retail real estate consultant at Strategic Retail Advisors in Newport Beach. “If this were in a more urban area back East no one would blink an eye.”

Kaleidoscope is across the street from the Shops at Mission Viejo, which has added Nordstrom and other high-power retailers in a major make-over. But analysts said the upgrade may have helped Kaleidoscope by luring more shoppers to the area. “It’s probably a plus,” said Ian Brown, a broker at Grubb & Ellis Co.

The center, which opened in 1998, cost $55 million. But industry sources estimated the Kaleidoscope will sell for much less--perhaps $32 million to $42 million. Donald Paskewitz, a senior vice president for the center’s developer and owner, Samsung Pacific Construction in La Mirada, declined to comment.

But with land in short supply, analysts said large malls, like Fashion Island in Newport Beach and South Coast Plaza in Costa Mesa will be more difficult to build in the future because it will mean acquiring large pieces of property.

Instead, retail centers in coming years will look more like Kaleidoscope, leading some industry analysts to speculate that it might command a better price.

“The only problem is, it came before its time,” Brown said. “They are in one of the best locations.”