By Samantha Goldberg

The buyer plans to update the 292-unit Amerige Pointe, which is located within a historic master-planned community.

Fullerton, Calif.--Amerige Pointe, a 292-unit Class A property within the master-planned Amerige Heights community, sold for $115 million, Berkadia announced. The sale, which comes out to about $394,000 per unit, was facilitated by Berkadia‘s Joe Leon, Jeff Rowerdink and Dean Zander, who represented both the seller and the buyer.

The buyer and seller were not disclosed, but the last time the property sold was in 2004, when PGIM Real Estate bought the community for about $89,000 per unit from Morgan Group, according to Yardi Matrixdata.

Located at 1001 Starbuck St., in North Orange County’s Sunny Hills neighborhood, Amerige Pointe comprises 17 three-story buildings and 10,300 square feet of retail space. The 12.5-acre site offers a mix of studio, one-, two- and three-bedroom units as well as some townhome apartments. Units range in size from 690 square feet for a studio and up to 1,327 square feet for a three-bedroom/two-bath unit, with monthly rents of $1,994 and $2,847, respectively, according to Yardi Matrix.

Unit features include detached garages, washers and dryers, 9-foot ceilings and kitchens with islands. The community offers amenities like an indoor sports court, conference room, theater, game room, fitness center and resort-style pool with spa. The property’s occupancy is currently at 96.9 percent, according to Yardi Matrix data.

The buyer is described as a global fund and plans to upgrade the interiors and some of the common area spaces.

“Since the interiors were over 10 years old, Amerige represented a rare opportunity to acquire an institutional-quality multifamily asset in North Orange County with a value-add component,” Zander said. The community is located across from a retail center anchored by Target and Albertson’s grocery store. It is also close to downtown Fullerton and has access to the master-planned community’s amenities, which include the Town Center with more than 400,000 square feet of retailers. Amerige Heights also offers two schools, Robert Fisler Elementary and Sunny Hills High School.“All of the schools that service this district are rated 10 out of 10,” Leon said. “This is very rare and helped create tremendous interest in this offering.”

​Amerige Heights has a long history, founded by brothers George and Edward Amerige in 1887. Howard Hughes chose several hundres acres in the Fullterton area to be the home of a defense research facility during the Cold War, and years later the site transformed into Amerige Heights, where walkable streets, parks, shops and community buildings were built. Community planner Peter Calthorpe has provided input on the development of the community.

By Andrew Khouri

Westfield Corp. plans to demolish its struggling Promenade shopping mall in Warner Center and replace it with a massive mixed-use complex with nearly 1,500 homes, two hotels and a concert venue.
The $1.5-billion project is meant to serve as a downtown district for the West San Fernando Valley and would be an extension of Westfield’s recently opened $350-million Village at Topanga “lifestyle center” across the street.

In additional to housing, plans for a new Promenade include shops, offices and a 15,000-seat arena for concerts and sports.

Also envisioned are 7 acres of open space, including a 1-acre park, known as Promenade Square that could host outdoor movie nights. “Our goal is to really transform the Promenade mall into a community destination that allows people to live, work and play all in one area,” said Larry Green, a senior vice president with Westfield.

The nearly 1,500 apartments would be spread out in several buildings and range from studio units to luxury villas, he said.

The shopping giant still needs city approvals for the redevelopment project and has launched a website to gather community support.

Los Angeles City Councilman Bob Blumenfield, who represents the area, called the proposal from Westfield “an exciting prospect for the West Valley” but one that will be subject to significant community scrutiny. 

Westfield Corp. wants to turn its Promenade mall into a mixed-use community with residences, hotels and offices. (Courtesy of Westfield Corp)

“It has the potential to create jobs and offer the housing that is desperately needed while ensuring that the density is kept where mass transit flows, but it must be done right,” he said in a statement.
Green said the company hopes to start construction in 2020 or 2021. The project — known as Promenade 2035 — would open in phases with a target completion date of 2035.

The redevelopment of the 34-acre site, at Topanga Canyon Boulevard and Oxnard Street, would mark a major step in an effort to expand Warner Center beyond a district dominated by office parks and towers.

In 2013, the City Council approved a new master plan for the area with the hopes of making it more pedestrian friendly, while adding additional housing and entertainment options.

Several large projects have recently opened or are underway.

Last year, Westfield opened its Village complex between the Promenade and the Westfield Topanga mall. The new open-air center features trendy restaurants, retailers, farmers market and bocce ball courts.

In August, construction workers started to demolish the old Rocketdyne plant on Canoga Avenue. The 47-acre site will give way to a high-rise "urban neighbor-hood" with 4 million square feet of homes and 1.1 million square feet of offices.

In all, nearly 1,300 Warner Center residential units have been built since 2012, said Dean Zander, a senior managing director with real estate advisory firm Berkadia. Developers are expected to break ground on another 1,200 units over the next year.

“Warner Center has proven itself as a desirable location,” Zander said.

As Warner Center has evolved though, the 43-year-old Promenade has been a drag on the neighborhood. In his statement, Blumenfield said the Promenade had become a “blighted site” subject to “intense speculation over its future”

Last year, one of the center’s few remaining tenants, The Rack bar and restaurant, described the mall as a “ghost town” in a lawsuit against Westfield. The complaint alleges the company allowed the mall to “deteriorate to a mere shadow of its former self.”

Green said Westfield did not let the Promenade fall into disrepair but noted that the closure of two Macy’s stores there last year “certainty affects the property.”

Indeed, mall owners across the country have been struggling as department stores close and consumers buy more online or increasingly spend money on dinners, concerts and other experiences rather than a new shirt.

Westfield’s response to that trend has been to pour money into its higher-end properties, creating outdoor lifestyle centers that augment traditional malls with restaurants and other leisure activities. Its Century City mall is undergoing an $800-million makeover into such a center with walking paths, gardens and a host of new eateries.

Green declined to reveal a vacancy rate for the Promenade but said some businesses remain open and will be for the “foreseeable future.” Those include AMC Theatres and Maggiano's Little Italy restaurant.

​“The Promenade is not closed,” Green said. “This is the very beginning of the process.”