The Sun
Sunnyvale's Newspaper

Town Center's new owner promises to lure a major venue to mall

By Justin Berton

Sunnyvale's Town Center, the largest retail mall in the city, was sold to a Southern California real estate company for $26 million Thursday afternoon.

David Kato, a spokesperson for the Sherman Oaks-based American Mall Properties, said the company will begin working immediately to overhaul the troubled image that has stigmatized the Town Center in recent years.

Kato said American Mall Properties plans to lure a major entertainment venue to the center to make the mall a high-traffic destination point for residents of the South Bay.

Kato declined to specify what type of entertainment attraction would anchor the Town Center, citing confidential on-
going negotiations with potential tenants.

"Sunnyvale is in the heart of the Silicon Valley, on the cutting edge of technology. The mall should reflect that," Kato said. Kato added the entertainment venue "will be on the forefront, even a little bit splashy and over the top. It has to be a major draw."

Other changes, which could begin within 45 days, Kato said, include opening up the atrium to the mall's shoppers. "It's been closed to the public for the last couple of years," Kato said. "We think it will enhance the atmosphere for the patrons," he said.

The new owners are a welcome sight for some shopkeepers who said the previous mall owners, TrizecHahn, did little to bring shoppers to the center once the decision to sell the mall came down several years ago.

Marie Beers, the owner of Heavenly Scent, said she applauds the new owners' plan to revitalize, but also fears they could ask current tenants for long-term, high-priced, permanent leases.

"It makes me nervous," Beers, who has been in the business three years, said. "But I need it to turn around."

Beers quoted the Santa Claus who worked the mall last Christmas as saying, "You could roll me down the mall and not hit a person."

Kato said the new owners are also working to fill vacancies in the food court.

According to city reports, American Mall Properties is a new real estate group planning to specialize in the revitalization of struggling shopping malls.

In March, the company purchased its first mall, the Santa Maria Town Center, as part of its strategy to buy other malls in California. Kato said the company is currently negotiating to purchase several other properties.

The Sunnvyale Town Center has 271,000 square feet of retail shopping space, making it largest mall of its kind in the city. The center's largest tenants are Macy's, JC Penney and Montgomery Ward. Currently, the mall is running at 85 percent occupancy. Kato said all changes to the mall are planned to be completed by spring of 1999. Most of the renovations, including the entertainment venue, are hoped to be in place by Christmas of this year, he said.

Kato also said the new owners were encouraged by the city's plans to build a new downtown with office buildings, retail space, and a hotel.

"Whenever you are investing that much money, it's good to know other people are also making an investment," he said.

The purchase by American Mall Properties also quiets concerns from some who feared new owners would tear down the mall and attempt to raise housing.

"We are going to maintain and improve the value of the mall," Kato assured. "We're not going to convert it or do anything else."

[ Back to Contents Page | Sunnyvale Sun Home Page | Archives ]

This article appeared in the Sunnyvale Sun, July 15, 1998.
©1998 Metro Publishing, Inc. All rights reserved.