Anaheim GardenWalk, A Retail Center Next To Disneyland, Is Up For Sale
Five years after real estate investors purchased the Anaheim GardenWalk out of bankruptcy, the 455K SF outdoor retail center next to Disneyland is up for sale for the best offer.
CBRE is the exclusive listing agent for the seller, a group of real estate investors led by the Arcturus Group, which purchased the struggling outdoor mall in 2012 for a reported $73M.
The listing has been up since November with initial bids due in December, according to Loopnet. It is unclear whether the center received bids and, if so, how many.
Arcturus Group could not be reached for comment about why the center is on the block. A CBRE spokeswoman said the listing agent declined to comment.
An Anaheim city spokesman said with the many hotel developments in the area, the GardenWalk has potential.
“From a city perspective we want to see this as a success,” Anaheim spokesman Mike Lyster said. “It has seen gains in recent years and should it be sold, it’s a good opportunity for a new owner.”
Opened during the start of the recession in 2008, GardenWalk was a $280M project in the heart of the city’s robust resort district at 321 West Katella Ave. — just a couple of blocks away from Disneyland Resort and the Convention Center.
With longtime anchors such as California Pizza Kitchen, McCormick & Schmick's, The Cheesecake Factory and others, dining has never been an issue with the GardenWalk, but since its opening the center has been dogged with a lack of overall retail identity to attract locals and tourists.
GardenWalk first opened with the goals of becoming a luxury center. When that did not materialize and the center’s occupancy lowered to 50%, the retail center went bankrupt in 2010.
Arcturus Group purchased it a couple of years later and has made changes to the layout and added new tenants, most notably the House of Blues in 2017.
According to Loopnet, the center is 67% occupied with some on a temporary tenancy agreement, and 33% of the property is available for lease.
Other anchor tenants such as an AMC Theatre are coming later this year.
With Disneyland’s Star Wars Land: Galaxy’s Edge expected to open sometime in 2019 and a JW Marriott recently breaking ground next to GardenWalk, this could be a good opportunity for someone to come in and capitalize on the area.
Lyster, the city spokesman, said given GardenWalk’s rocky history, it is in the best shape it has ever been.