Park Place Mall in Tucson Sells for $87 Million in Foreclosure Auction”
Tucson, Arizona – In a significant real estate transaction, Park Place Mall, located at 5870 E. Broadway, has been successfully sold for $87 million in a foreclosure auction. This iconic mall was previously owned by Brookfield Corp., which also holds ownership of Tucson Mall.
The management and leasing responsibilities for the 1.1 million-square-foot property have been entrusted to Pacific Retail Capital Partners, a reputable Los Angeles-based firm specializing in real estate management. This decision comes following the mall’s foreclosure and was confirmed by CoStar, a leading national real estate analysis firm.
Notably, Park Place Mall had an outstanding loan of $154.4 million, as per CoStar data, and the sale price precisely matched the property’s appraisal value from June.
The mall’s lineup includes prominent anchor stores such as Century Theatres, Dillard’s, Round 1, Total Wine, and Old Navy. Currently, there are no immediate plans for alterations to the mall’s operations.
Brookfield Corp. declined to comment on the sale. However, local retail specialist Greg Furrier of Picor expressed optimism about the transaction’s long-term impact on Park Place.
Furrier highlighted, “It’s better long term because the cost of owning the mall for a new owner has gone down. That’s going to mean the mall has more flexibility in making deals.”
He further explained that both Park Place and Tucson Mall had entered into short-term leases with low rates. When interest rates started to rise, it impacted their cash flow. Furrier believes that Park Place Mall is better positioned to recover from this situation compared to its counterpart on Oracle Road, which remains under Brookfield’s ownership.
He added, “Tucson Mall has way more space and more problems. I think Park Place mall is a great mall.”
Tenants of the mall need not be concerned about the change in ownership. Furrier reassured, “Most of the time, they don’t want to do it because the lease is like a lien on the property, and banks don’t want to cancel leases.”
Park Place Mall, a Tucson landmark, originally opened its doors in 1970 and has undergone various upgrades over the years.