Overview

Description

Serving a large geographic section of California’s Central Valley, Merced Mall is undergoing a major redevelopment to ensure its long term dominance in the market. The 53-acre shopping destination will move towards becoming more entertainment and service-driven which will result in more foot traffic and repeat customers.

Positioned among Building C & D, a third of the enclosed mall will be demoed and reconfigured to make room for a 56,000 square foot luxury Cinemark movie theater, Cinmark has a contingent lease in place, and an outdoor Theater Square, featuring a promenade with gathering space and multiple restaurants.

MERCED, CA GROWTH
Located in the rapidly growing Central region of California, the city of Merced is projected to experience significant population growth. California’s population is estimated to grow by over 10M people by 2030, San Joaquin Valley is expected to see a significant portion of this growth. The City of Merced has planned for a growing community while preserving its small town feel.

NEW DEVELOPMENT - MERCED GATEWAY
Under 5 miles from Merced Mall at Highway 99 and Campus Parkway interchange is the location of the new ±77 acre master planned community of Merced Gateway. This development has 496 planned apartment units and 2,200 detached residential units. The new development also includes connecting South and North Merced via a 4 lane expressway.

VALUE-ADD PROPOSITION | BASIS
This offering is positioned to provide an investor an exceptional basis. Pricing expectations are grounded in Retail Land Value and Discounted Replacement Value.

READY-BAKED
Ownership has worked with the city of Merced to fully permit the redevelopment / repositioning of the premises. The City of Merced will act like a partner in facilitating the develop plans due to the Mall’s ground-zero location within the city.

REPOSITIONING
Only Kohl’s and JCPenney have more than 5 years of term remaining, which allows for full discretion in creating a new site plan. The Open-Air Concept site plan has been created to build a modern campus for all customers. While the option to create an Experiential Use, including Cinemark’s approval of the site feasibility, would drive foot traffic for all tenants.

REDEVELOPING
The site also has the potential for Housing and Student Housing to create a mixed-use campus. Having an ultralow basis only enhances the optionality of the project, as it allows for more opportunity to increase equity.

Documents

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