EVERETT — California real estate investment firm Brixton Capital announced Monday that it has purchased Everett Mall for an undisclosed price.
The 490,949-square-foot mall at 1402 SE Everett Mall Way houses Sears, Regal 16 Cinemas, Burlington Coat Factory, Party, LA Fitness and other businesses.
The purchase does not include the former Macy’s building, which is attached to the main mall but owned separately, by another company. It also doesn’t include the outlying Everett Village Center shops.
The main portion of the mall was sold by Steadfast Companies, which also managed the property, and Canyon Partners, an investment group based in Los Angeles. The group had been trying to sell its stake in the property for more than two years.
Brixton Capital has been eager to buy malls. The Solana Beach, California, company has purchased four in the past 18 months and made seven major acquisitions of real estate.
“The retail market is in flux, but this has allowed us to secure an established property in one of the fastest-growing markets in the country at an otherwise unachievable basis,” Bob Emri, Brixton Capital’s chief investment officer, said in a statement.
Jones Lang LaSalle Americas has been selected to manage and lease the property.
“We are very excited to join the Brixton Capital portfolio and the JLL team,” said Glen Bachman, the mall’s general manager. “Brixton Capital is very excited about the growth in the area and the long term sustainability of Everett Mall. We look forward to working with the new ownership to develop new strategies for the property.”
Brixton Capital owns and operates a portfolio valued in excess of $1 billion, representing more than 10 million square feet of retail, multi-family, office, industrial and land investments across the U.S. and Europe.
Brick-and-mortar retail businesses have been taking a hit lately. For instance, Macy’s closed at the Everett Mall just this year.
Still, the Everett Mall generated $5.5 million in net operating income a year, Commercial Real Estate Direct reported in August 2015.
Steadfast bought the mall in 2004 for about $50 million. The owners then put millions of dollars into a strip of stores on the west end of the mall parking lot.
The expansion — dubbed Everett Village Center — was sold in 2007 to SJ Realty Investments of Ohio.
In 2015, the investment group sold the property for $22.5 million to Stockbridge Capital Group, a San Francisco-based company.
Steadfast Companies defaulted on a $98 million loan in 2012. The following year, Canyon Partners joined the ownership of the property.