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Citing economic concerns, developer LPC West backed out of a plan to redevelop a shuttered San Bernardino, California, mall. It signed on to the project in August.
"Due to economic and other circumstances, it has become apparent that Lincoln and the city will not be able to successfully negotiate a [development and disposition agreement]," LPC West President Rob Kane told the city in a letter earlier this month, according to the San Bernardino Sun.
“The real estate market has slowed significantly in just the past few months, largely due to rising interest rates to finance projects,” San Bernardino officials told the Sun in an Oct. 14 statement.
LPC West, a division of Lincoln Property Co., was a recent addition to the project, having been named its exclusive developer, the San Bernardino Sun reported in August.
"We’re very excited about this project,” LPC Senior Vice President Stephen Lindgren told city council members in August. “We think it’s very transformational. We know how important this is to the community. We want to do it thoughtfully and right from the start.
Prior to LPC West signing on, developers Renaissance Downtowns USA and ICO Real Estate Group were leading the mall project, the Sun reported. The city was glad to add an experienced mixed-use developer to its redevelopment team, according to the Sun. LPC was the developer on the Runway at Playa Vista and the Flight at Tustin Legacy in Tustin, California.
“This is disappointing,” City Manager Rob Field said in a statement to the Sun. “But it’s just a setback. This project will be further advanced."
Over the summer, the city announced plans to demolish the mall, which has become a blight and a public nuisance in the five years that it has been vacant. City officials are reviewing proposals now.
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