Park Place mall has been sold in a foreclosure auction for $87 million.
The mall, at 5870 E. Broadway, was owned by Brookfield Corp., which also owns Tucson Mall.
Pacific Retail Capital Partners of Los Angeles was appointed to manage and lease the property, according to CoStar, a national real estate analysis firm.
The 1.1 million-square-foot property had an outstanding loan of $154.4 million, CoStar data shows. The sale price matched the appraisal value of the property from June.
The mall’s main anchor stores are Century Theatres, Dillard’s, Round 1, Total Wine and Old Navy.
No changes to the mall are immediately expected.
Brookfield did not respond to a request for comment.
Greg Furrier, a local retail specialist with Picor, said the sale could be good for Park Place.
“It’s better long term because the cost of owning the mall for a new owner has gone down,” he said. “That’s going to mean the mall has more flexibility in making deals.”
He said both Park Place and Tucson Mall entered short-term leases with low rates and when interest rates began to rise, cash flow diminished.
But, Furrier believes Park Place is in a better position to recover than its sister mall on Oracle Road, which remains under Brookfield’s ownership.
“Tucson Mall has way more space and more problems,” he said. “I think Park Place mall is a great mall.”
Tenants should not fret the sale.
“One thing tenants worry about is, if the bank takes this building back, can they take the lease,” Furrier said. “Most of time they don’t want to do it because the lease is like a lien on the property and banks don’t want to cancel leases.”
Park Place opened in 1970 and has undergone several upgrades over the years.
