Santa Monica Place’s Value Falls by Nearly 60%: Report

Retail Vacancies Have Compounded the Mall’s Struggles

Santa Monica Place, a high-profile shopping destination in Santa Monica, continues to face significant financial setbacks as its valuation plummets and its ownership navigates a challenging economic climate, according to reports.

The Macerich Company, a real estate investment trust based in Santa Monica, defaulted on a $300 million loan backing the 534,000-square-foot mall earlier this year, as reported by The Real Deal. The loan, which entered special servicing for the second time in two years in April, was originally set to expire in December 2023 but was extended by lender Wells Fargo, according to Globest.

Morningstar Credit recently reported that the mall’s value has declined by 59 percent since its loan issuance, from $622 million to $255 million, TRD reported. CFO Scott Kingsmore explained during a Q1 earnings call that the decision to default was due to the property’s declining performance and “challenging underlying capital structure.” Macerich reported a $127 million loss in Q1 2024, partly due to the bankruptcy of Express, a retailer with 23 stores across Macerich properties, as reported by Globest.

Retail vacancies have further compounded the mall’s struggles. 

Bloomingdale’s and ArcLight Cinemas vacated approximately 150,000 square feet of space in 2021, leaving more than half of the mall available for lease by early 2023, TRD reported. Efforts to draw foot traffic, including pop-up events like a Barbie-themed exhibit, have yielded limited results.

Designed by renowned architect Frank Gehry, Santa Monica Place opened in 1980 and underwent a $265 million renovation in 2007.

Related Posts

Palisades Restaurants to be Supported at Westside Benefit This Weekend

June 4, 2025

June 4, 2025

Local vendors, many impacted by the fires, will have booths with all vendor fees waived, and proceeds from on-site sales...

Chamber Music Palisades Presents an Afternoon of Beethoven, Brahms, Debussy, and More

June 4, 2025

June 4, 2025

Brentwood Hosts Free Classical Concert with LA Philharmonic Greats Chamber Music Palisades will present a free community concert on Saturday,...

Orchestra Santa Monica Extends Music Director’s Tenure Through 2030

June 4, 2025

June 4, 2025

Under his leadership, the orchestra has delivered a series of sold-out concerts, earning praise for his conducting skills Orchestra Santa...

Venice Beach Tapped to Host Paralympic Events in 2028 Games

June 4, 2025

June 4, 2025

The coastal neighborhood, already set to host triathlon, marathon, and road cycling starts for the 2028 Olympics, will showcase Paralympic...

(Video) Some of the Damage Caused By Vandals at Malibu High School Overnight

June 4, 2025

June 4, 2025

40 to 50 people, who are suspected to be students or recent alumni, used eggs, flour, and markers to deface...

Biggest Night of the Year: Don’t Miss GMCLA’s ‘Dancing Queens’

June 3, 2025

June 3, 2025

Culminating its 46th season, the Gay Men’s Chorus of Los Angeles will grace the crowd with Dancing Queens, celebrating iconic...

Khatri International: Consider Rebuilding With Fire Resistant Construction Methods

June 3, 2025

June 3, 2025

What do office buildings, hospitals, schools, fire and police stations have in common? They are built with noncombustible construction methods...

Malibu High Targeted in Overnight Vandalism Spree; Investigation Underway

June 3, 2025

June 3, 2025

Destruction on Campus Prompts Sheriff’s Probe; Students May Face Charges Vandals caused extensive damage to the school property of Malibu...

Palisades High School Rebuilding Designs to be Discussed in LAUSD Meeting

June 3, 2025

June 3, 2025

DLR Group, selected as the lead architect, brings over 25 years of collaboration with LAUSD Palisades Charter High School will...

Local Organizations Push for Electrification Options in Palisades Rebuilding

June 3, 2025

June 3, 2025

Resilient Palisades, in collaboration with the Neighborhood Council Sustainability Alliance, has developed resources to guide households toward resilient and sustainable...

Design Options Emerge for Santa Monica Airport Conversion into Public Park

June 3, 2025

June 3, 2025

Community feedback, gathered through over 4,984 survey responses, shows a strong preference for pedestrian- and cyclist-friendly designs, integrated water systems,...

2025 Venice Pride to Feature a Block Party, Dance Event, Food Trucks, and More This Weekend

June 3, 2025

June 3, 2025

Attendees can expect performances by DJ Victor Rodriguez & Friends, a variety of community booths, food trucks, and a queer...

A Season of Gratitude: After One Year in Business, Urban Jungle Continues Making its Mark

June 2, 2025

June 2, 2025

Over the last year, Urban Jungle, an indoor and tropical plants nursery, has continued its mission to cultivate a place...

The soul’s greatest hits

June 2, 2025

June 2, 2025

From ‘Ave Maria’ to ‘Hallelujah Chorus’ and ‘Ode to Joy,” a Santa Monica concert raising funds to help fire victims...

Update: FireAid Fund Distributes $21M to Palisades and Adjacent Areas

June 2, 2025

June 2, 2025

The Pacific Palisades Community Council plans to briefly address this update at its next board meeting  The Pacific Palisades Community...