Developer/investment firm CIM Group announced Wednesday it has reached a deal to purchase Baldwin Hills Crenshaw Plaza and will scrap a redevelopment plan that included a mix of residential and commercial space.
“Baldwin Hills Crenshaw Plaza occupies a pivotal location in a well-established Los Angeles community, centrally located and adjacent to a soon-to-open Metro light rail station,” CIM Group principal and co-founder Shaul Kuba said in a statement. “Two large anchors, Sears and Walmart, closed their doors prior to COVID-19’s shuttering the entire mall, and 300,000 square feet of space in these two large buildings continue to remain vacant.
“We have the opportunity to bring a fresh perspective to the future of the property viewed through the lens of the current climate and the acceleration of the already declining retail environment,” Kuba said. “Since 1947 this property has been a commercial property, and although current entitlements allow residential components, we believe that residential uses are not suitable for this property and it should remain a commercial property in our repositioning.”
Redevelopment plans for the site were approved by the city two years ago. CIM Group’s decision to scrap the residential project did not sit well with City Councilman Marqueece Harris-Dawson, who told the Los Angeles Times it “demonstrates an uninformed, ahistorical and premature analysis” that overlooks “hours of hearings, legal proceedings and other community involvement.”
Kuba told The Times the company paid more than $100 million for the 40-acre complex at Crenshaw and Martin Luther King Jr. boulevards. The mall covers about 869,000 square feet.
The Macy’s store and IHOP restaurant were not included in the sale.
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