News Summary
Westminster Mall’s future is in question as Washington Prime Group seeks to sell its stake following bankruptcy. Revenue has declined, prompting redevelopment plans that have faced challenges. Stakeholders remain watchful as retail trends shift.
Westminster, California – The future of Westminster Mall hangs in uncertainty as its landlord, Washington Prime Group (WPG), actively seeks to offload its stake in the shopping center. The recently filed Chapter 11 bankruptcy protection by WPG and plans to streamline its portfolio have raised questions about the mall’s viability moving forward.
WPG, which previously managed to conduct significant sales last year, is in the process of selling several of its properties, including the Westminster Mall. The company has disposed of half of its national portfolio since filing for bankruptcy, and Westminster Mall is included among the properties listed for sale. Other malls in WPG’s portfolio up for sale include Scottsdale Quarter in Arizona, Gateway Shopping Center in Texas, and Polaris Fashion Place in Ohio.
Opened in 1974, Westminster Mall has struggled with declining revenue, reporting $120.1 million in taxable income for the year ending June 2024, marking a 1.6% year-over-year decline. The mall’s sales figures have plummeted from nearly $270 million in the early 2010s to significantly lower amounts in recent years. The dwindling foot traffic reflects broader trends impacting shopping centers across the nation, prompting a push for redevelopment and adaptive reuse.
Redevelopment Attempts and Future Plans
Efforts to redevelop Westminster Mall included ambitious plans to convert the site into a mixed-use hub, which would feature over 1,200 residential units. These plans proposed transforming the mall into a place that integrates living spaces with retail, aiming to attract more visitors by blending shopping with other lifestyle experiences. However, these redevelopment efforts faced hurdles, including a failed effort to sell part of the property to Taylor Morrison Corp. for $160 million.
In a related note, Shopoff Realty Investments—an Irvine-based firm—holds a significant stake in the Westminster Mall, having acquired a 26-acre parcel that includes Macy’s and the former Sears store for approximately $95 million in 2022. Their proposed Bolsa Pacific project intends to add 1,065 rental units, 102 for-sale townhomes, a 175-room hotel, and 25,000 square feet of retail space, complete with green spaces and recreational amenities. Nonetheless, this project’s plans have not seen updates since 2023, intensifying concerns about its fate.
Potential Medical Facility Development
In close proximity to Westminster Mall, Kaiser Permanente purchased a 10-acre plot in 2020 for a new medical office facility. However, the timeline for this project’s development remains undisclosed, adding further layers of uncertainty regarding future investments in the area.
Shifting Retail Trends
The challenges facing Westminster Mall are emblematic of wider trends seen across the retail landscape in recent years. As shopping habits change, malls are under increasing pressure to evolve their business models. Industry experts report that over 200 malls nationwide have integrated residential housing into their properties as a response to declining consumer foot traffic and the growing preference for experiential retail environments.
As WPG moves toward an exit strategy for its remaining properties, the outcome for Westminster Mall hangs in the balance. Stakeholders, including consumers, surrounding communities, and potential developers, remain watchful of how this situation unfolds, as it could greatly shape the future of the once-thriving shopping destination.
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Additional Resources
- Orange County Business Journal: Westminster Mall Put On The Market
- NBC Los Angeles: Vacant Malls Repurposed For Housing in Orange County
- Orange County Business Journal: Westminster Mall Targeted For Sale
- Orange County Register: Orange County’s Evolving Landscape Needs Infill Redevelopment of Retail Centers
- CoStar: America’s Mall Overhaul Takes On Latest Shape In California Retail Haven
- Wikipedia: Mall
- Google Search: Westminster Mall California
- Google Scholar: Mall Redevelopment
- Encyclopedia Britannica: Shopping Mall
- Google News: Westminster Mall Redevelopment
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
