The billionaire real estate tycoon and owner of the Los Angeles Rams is looking to expand his real estate holdings in greater L.A.
Stan Kroenke is interested in buying the roughly 50,700-square-foot Malibu Village shopping center along the iconic Pacific Coast Highway at 3822-3844 Cross Creek Road in the affluent Malibu, California, area, according to state records. In April, Kroenke formed GKT Malibu Village LLC, according to state records.
Three people familiar with the deal confirmed to CoStar News that the seaside shopping center is under contract to sell for an unspecified price.
The current owner is Jamestown, a massive Atlanta-based real estate investment firm. The company’s Jamestown Premier Malibu Village LP bought the property for $120 million in May 2014, according to state records and CoStar data.
Kroenke is no stranger to Malibu. The billionaire also owns shopping center Malibu Colony Plaza and a home there, according to CoStar data and state records. A representative for Kroenke didn’t respond to a request to comment from CoStar News.
Malibu Village is known as the discount center of Malibu, a relative term in the upscale town because of the property’s retail lineup that includes tenants such as Chipotle, real estate analysts say. However, Malibu Village also features high-end retailer Fred Segal.
The property probably attracted global investment attention because of its location and the high household incomes nearby, said Gabe Kadosh, vice president of Colliers in Los Angeles, who isn’t involved in the deal. Kadosh said Malibu is one of the most high-end shopping districts in greater Los Angeles. Other valuable shopping districts in greater L.A. include Rodeo Drive in Beverly Hills, Abbot Kinney and Melrose in Los Angeles and 3rd Street Promenade in Santa Monica.
Kadosh said there are challenges with Malibu Village’s tenant mix, and retail in general faces headwinds because of the uncertain economy. However, he said the real estate is desirable and doesn’t trade often.
“This is a relatively safe bet overall,” Kadosh said.
The Pacific Palisades-Malibu retail market has an average market rent of $75.72 per square foot, far higher than the greater L.A. average of $35.38 per square foot. The market’s average vacancy is 5.5%, near greater L.A.’s average of 5.3%.
Kroenke has been growing his real estate portfolio in Los Angeles. The billionaire paid $325 million for The Village mall in the San Fernando Valley in December after buying an office building and mall in Woodland Hills last year. Meanwhile, Kroenke’s first apartments opened this month in his 300-acre redevelopment of Hollywood Park in Inglewood, California.