Newport Beach-based Hopkins Real Estate Group has purchased SouthBay Pavilion at Carson for $34.4 million and will spend as much as $20 million more to upgrade the 30-year-old mall.
The seller was Carson Mall Partners, composed of Paramount real estate investors David Fu, Charlie Lyons and Chuckie Lyons.
SouthBay Pavilion needs to be updated with tenants that will attract more visitors and entice them to stay longer, said Hopkins President Steve Hopkins.
The renovation could include restaurants, a fitness club and entertainment-oriented businesses such as theaters, he said.
Built in 1973 and renovated in 1992, SouthBay Pavilion includes 937,680 square feet of retail space on 71.3 acres. It is anchored by Sears, JCPenney and IKEA. All three stores, totaling 578,584 square feet, own their respective sites and buildings and were not included in the purchase.
Hopkins bought 359,096 square feet of stores on 30.5 acres. The property at Del Amo and Avalon boulevards is 86% occupied by tenants including Toys R Us, Chuck E. Cheese's, Computer Education Institute, Payless ShoeSource and Foot Locker.
Also on the site are free-standing buildings occupied by a Tony Roma's restaurant and Bank of America. Included in the purchase were three undeveloped parcels where other free-standing buildings can be built.
The Genesis LA Real Estate Fund is Hopkins' partner in the deal and will pay for revitalizing the center to attract new tenants. Genesis LA provides financing for developments to benefit low- to moderate-income neighborhoods in the Los Angeles area. It makes investments designed to spur economic activity and create jobs.
The manager of the fund, Shamrock Capital Advisors, is an affiliate of Shamrock Holdings of California Inc., the investment arm of the Roy E. Disney family, headquartered in Burbank.
The mall should be a "huge resource" for the surrounding neighborhoods of Carson, Compton and South Los Angeles, but it is underutilized, said Shamrock Holdings Director Joe Fahey.
"It's a Class B mall that's been well managed but needs some work done to really make it exciting," Fahey said.
Hopkins Real Estate Group develops neighborhood and community shopping centers in urban and redevelopment areas, primarily in California. The company has 13 other California projects in development including Whittwood Town Center in Whittier, the Hub in San Bernardino, Signal Hill Marketplace and six properties in the Santa Clarita area.
The company also is negotiating to buy East Bakersfield Mall in Bakersfield and a mall in the Inland Empire.