Prism Places, a commercial real estate management firm with $2.8 billion in assets under management, has been appointed to manage the struggling Santa Monica Place shopping center, the company announced Thursday.
Santa Monica Place was once the home-town hub for the locally based Macerich Co. but after years of declining revenues the 527,000-square-foot outdoor retail center, is now under the control of Trigild, a court-appointed receiver that assumed control of the property last month after Macerich defaulted on its loans.
"After the devastating fires, the westside of Los Angeles is in need of community and places to gather," said Stenn Parton, Founder and CEO of Prism Places. "Santa Monica has had its challenges even before the fires and the neighborhood of Pacific Palisades has endured so much loss—my home included. We're motivated and inspired to restore Santa Monica Place to the heart and soul of this community."
Prism Places brings significant experience in repositioning distressed assets, particularly in Southern California. The firm previously revitalized RUNWAY Playa Vista and currently manages other regional shopping centers including Pasadena Commons, Paseo Nuevo in Santa Barbara, and properties on Rodeo Drive.
The company’s general strategy is to balance global with local brands for both retail and dining options, optimize internal design of properties and utilize locally produced events to draw visitors into their shopping centers.
Trigild's appointment as receiver represents a significant step in addressing the financial troubles that have plagued the shopping center. The receivership follows Macerich's default on a $300 million loan for the property, with the company indicating earlier this year that it would return ownership to the lender.
Court-appointed receivers typically oversee troubled properties during transition periods, working to stabilize operations while legal and financial matters are resolved. Trigild engaged Prism Places specifically to handle day-to-day operations and implement a turnaround strategy for the struggling center.
Santa Monica Place was once home to a host of luxury retailers, dining options, department stores and a movie theater. Today, the Mall’s biggest draws are the Cayton Children’s museum, Cheesecake Factory and the newly opened Din Tai Fung and the overall vacancy rate is almost 70%. While permanent tenants have been hard to find, the Mall has had success with rotating pop-up attractions on the lower levels.
Santa Monica Place, originally designed by renowned architect Frank Gehry, underwent a $265 million renovation in 2010 to transform it from an enclosed mall into an open-air center. Macerich, which has owned the property since 1999 announced last year the company identified Santa Monica Place as one of several properties it would like to sell.
The management change comes amid a broader economic crisis facing Santa Monica. The city continues to operate with a structural deficit despite the passage of new tax measures, requiring the allocation of an additional $33.2 million from General Fund reserves over the next five years to balance the budget, according to a recent staff report.
Santa Monica's recent sales receipts from July through September were 11.1% below the same period in 2023. Excluding reporting aberrations, actual sales were down 6.8%, with significant declines in general consumer goods, auto sales, dining establishments, and business-industry categories.
The city's once robust tourism industry continues to suffer, and an exodus of corporate businesses has driven the daytime population to 60% of pre-pandemic levels. The lack of foot traffic has severely impacted local businesses and key revenue streams like sales tax, parking fees, and hotel taxes.
However, City Hall has long maintained that an economic turnaround is on the horizon pointing to plans for a new hotel and increased housing construction in the Downtown area.
