Dallas-based Centennial Real Estate Company is ramping up its presence where global commercial real estate company Unibail-Rodamco-Westfield (URW) is downsizing.
Earlier this week, the two firms announced Centennial’s $199 million acquisition of the Westfield Valencia Town Center in Southern California. This move aligns with URW’s larger objective to divest from most of its U.S. properties. In contrast, Centennial has hinted at potential transformational changes to the mall, indicating plans for a mixed-use redevelopment, encompassing luxury residences and office spaces, according to a recent report in the Commercial Observer.
The Westfield Valencia Town Center was appraised at nearly $205 million at the end of 2022, according to the report, so the sales price was close to achieving parity with that figure. URW owned 50 percent of the asset, while TIAA held the other half of ownership.
Valencia Town Center boasts over 1.1 million square feet, and it plays host to more than 140 retailers, eateries, and entertainment destinations. A highlight is The Patios, an outdoor district that has been a unique feature since its inception. Constructed in 1992 and later renovated in 2010, the property is located approximately 36 miles from Downtown Los Angeles in the heart of Southern California’s Santa Clarita Valley, an area known for film production, aerospace, manufacturing, biomedical and high-tech industries.
“Valencia Town Center is prime retail real estate with an LA-adjacent location in a prosperous and growing community, all of which makes it a tremendous asset for Centennial’s expanding portfolio of owned and managed properties,” says Carl Tash, Chief Investment Officer and Senior Executive Vice President, Centennial. “We do envision some changes for Valencia Town Center, similar to the strategic redevelopments taking place now at Hawthorn and Fox Valley in the Chicago area. While it is too soon to announce any definitive plans, Valencia Town Center is in the perfect location to become a multi-use live-work-play destination that seamlessly and aesthetically combines retail, restaurants, entertainment, luxury living and office space in a single master-planned campus.”
“We are committed to this shopping center and to the Santa Clarita community for the long haul, and with some creativity, we can reimagine this center, maximizing its potential for today and tomorrow,” says Steven Levin, founder and CEO of Centennial. “There is never anything cookie-cutter about what we do at Centennial; when we approach a redevelopment, it is always in partnership with the community, taking the community’s wants and needs into account. While we contemplate changes for Valencia Town Center, we will strive to maintain the essence of what this center has always been to the city of Santa Clarita, building upon that to create a transformative and vibrant mixed-use campus that is attractive to locals and visitors alike.”
The addition of Valencia Town Center to Centennial’s growing portfolio of owned and managed properties further expands Centennial’s California footprint. Having recently been awarded the management contract for Mission Valley in San Diego, Centennial also owns or manages a number of other California properties, including MainPlace in Santa Ana, Pacific City in Huntington Beach, The Shops at Montebello in Montebello, Antelope Valley Mall in Palmdale, and Northridge Mall in Salinas.
Going forward, the “Westfield” moniker will be dropped, and the shopping center will be known simply as Valencia Town Center.
