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

Bacio di Latte Set to Serve Gelato From New Downtown Santa Monica Spot

March 27, 2025

March 27, 2025

Bacio di Latte offers a range of flavors, including classic options like Stracciatella, Pistachio, and Hazelnut Italian gelato chain Bacio...

Palisades Council Opposes Housing Density Bill, Emphasizes Rebuilding Priorities

March 26, 2025

March 26, 2025

The council urged state lawmakers to oppose SB 677 and called on Los Angeles City Councilmember Park to introduce a...

Pavilions Motel Ordered to Close After Public Nuisance Ruling

March 26, 2025

March 26, 2025

The ruling means the motel must shut down and cannot reopen under the current ownership for at least one year...

Cinque Terre West Reopens in Venice After Palisades Closure

March 26, 2025

March 26, 2025

The Vinzonis have now joined The Colony, a food hall in Venice, to continue serving their signature dishes Nine months...

Saint Monica Prep Welcomes New President

March 26, 2025

March 26, 2025

She has served as principal of Seattle Preparatory School since 2016, brings extensive experience in Catholic education Saint Monica Preparatory...

Hundreds March in Santa Monica to Advocate for Immigrant Rights

March 26, 2025

March 26, 2025

The march took place amid growing tensions over immigration policy at the national level Several hundred demonstrators marched through the...

More Than 60 Cormorant Eggs and Chicks Rescued in Marina del Rey

March 26, 2025

March 26, 2025

Rescue personnel carefully transported the eggs and chicks—some only a few days old—to International Bird Rescue More than 60 double-crested...

Lawsuit Alleges LADWP Power Line Contributed to Deadly Palisades Fire

March 25, 2025

March 25, 2025

The lawsuit alleges the agency engaged in a deliberate cover-up to conceal the line’s involvement A lawsuit filed Monday alleges...

Money Raised from FireAid Concert to Fund Interactive Palisades Playground

March 25, 2025

March 25, 2025

FireAid, held on Jan. 30 at the Intuit Dome and Kia Forum, raised an estimated $100 million for wildfire relief...

SMC Concert Band to Perform Free Show Featuring Marine Band Clarinetist

March 25, 2025

March 25, 2025

Santa Monica College’s Emeritus Concert Band, under the baton of Yosuke Miyoshi, will present “Sea to Shining Sea,” a free...

 (Video) School of Rock Camps Provide Normalcy and Solace Amid Wildfire Destruction

March 25, 2025

March 25, 2025

For More Info, Go To Schoolofrock.com/locations/westla For More Info, Go To https://t.co/vPG3dgHgpF pic.twitter.com/ILkRXvMMbF — Palisades News (@PalisadesNewsLA) March 25, 2025

Palisades Fine Arts Gallery Reopens in Santa Monica Months After Destruction

March 25, 2025

March 25, 2025

The gallery, previously the only fine arts space in the Palisades, lost nearly all of its collection in the fire...

Deadline Approaching for Wildfire Debris Removal in Burn Areas

March 24, 2025

March 24, 2025

USACE officials reported that around 1,300 properties in the Palisades Fire impact area have yet to declare whether they will...

Google’s Iconic Binoculars Building in Venice is Up For Sale: REPORT

March 24, 2025

March 24, 2025

Google, which has occupied the property since 2011, remains under a triple-net lease that runs through October 2030 The Binoculars...

Santa Monica Eases Restaurant Regulations to Support Post-Fire Economic Recovery

March 24, 2025

March 24, 2025

To help restaurants attract customers during the March Madness college basketball tournament, the emergency order lifts several restrictions on establishments...