SAN JOSE — San Jose’s Eastridge Center won an investor buying a stake in a large shopping mall to help it revamp its finances and reposition its tenant mix, management said Tuesday.
The investment by Silver Lake Capital Partners will help extend the maturity of the loan currently funding the Eastridge Center, according to co-owners of the large retail center.
In its latest transaction, Pacific Retail Capital Partners hired Silver Lake Capital Partners to strengthen the mall’s fortunes both financially and in the retail mix. Pacific Retail Capital Partners purchased Eastridge Center for his over $200 million in 2016.
“Pacific Retail has successfully relocated its facilities over the past several years with a comprehensive facility renovation,” said Steve Prange, Managing Principal Executive, Pacific Retail. “We will seek to use our past successes to move the assets forward in new partnerships.”
According to management, the Eastridge Center is facing far-reaching changes following the new investment deal.
“This presents many great opportunities for partnerships to take advantage of increased retail demand and potential long-term density to the site,” said Plenge.
A new investment group envisions increasing the profile of the mall.
Stephen Dye, Founding Partner of Silver Eagle Capital said:
Despite losing major retailers such as Barnes & Noble and Sears, the Eastridge mall has been joined by high-profile stores such as 24 Hour Fitness and H&M.
“When you lose anchor like Sears does, it hurts,” said David Tuxin, partner at commercial real estate firm Meacham/Oppenheimer. “But the Eastridge Center looks strong and is in decent shape when it comes to activity and shoppers.”
One reason is that Silicon Valley is likely not saturated with major regional shopping centers. Westfield Valley Fair, Santana Row, Stamford Shopping Center, Westfield Oakridge and Eastridge Center are the major malls in the area, serving millions of residents in the area.
“Eastridge Center serves a huge population,” says Tuxin. “In a way, we’re undervalued in Santa Clara County. East Ridge is upleased pretty well.”