The Sun
Sunnyvale's Newspaper

Town Center owners near agreement on sale of mall

By Justin Berton

For the second time in three months, owners of the Sunnyvale Town Center have entered into a tentative agreement to sell the troubled shopping center.

American Mall Properties in Northridge was set to close escrow with current owners, TrizecHahn, this week, according to a city report.

Spokespersons for both sides refused to comment on the sale.

David Kato of American Mall Properties said that under the terms of the contract, he was unable to comment until a finalized agreement had been reached. City Council members held a special meeting June 25 to approve the sublease for the city-owned parking garage to switch over to American Mall Properties. The city's approval gives the green light for the two sides to come to terms.

Councilmembers met in closed session for nearly 45 minutes, discussing approval of the deal.

After they broke from the closed session, it took 10 minutes in a public hearing for the members to approve the sublease in a 6-0 vote, with Mayor Jim Roberts absent. A representative for American Mall Properties did not speak at the public hearing.

According to a city report prepared by the office of City Manager Robert LaSala, American Mall Properties is a small firm that "identifies and purchases under-performing regional malls with the intent to renovate and reposition them."

The shopping center has battled slow foot traffic in recent years and has been viewed as an impediment to the planned redevelopment of Sunnyvale's future downtown. The concept for the new downtown is to incorporate a small-town feel, which is the antithesis to the super mall of the '70s, when the Town Center was built.

In the city report, American Mall Properties pledges to revitalize the shopping center by launching an aggressive marketing campaign and by luring "innovative and family entertainment-oriented tenants."

The report also says American Mall Properties will host promotional efforts and work with the city of Sunnyvale to promote the mall.

"It looks like these guys are the real thing," said David Vossbrink, community relations officer for the city.

In March, locally owned Dubrovnik Associates Inc. briefly entertained the idea of purchasing the Town Center. Dubrovnik had recently purchased the Town & Country Shopping Village across the street for $10 million. But the deal for the Town Center fell through during the negotiations, Dubrovnik Associates founding partner Nick Gera said.

TrizecHahn has been trying to sell the Town Center for several years. The Toronto-based group is in the midst of selling off its 24 properties around the country in an attempt to purchase more upscale properties.

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This article appeared in the Sunnyvale Sun, July 1, 1998.
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