Pacific Retail Capital Partners (PRCP), one of the nation’s leading retail real estate development, investment, management and advisory firms focused exclusively on evolving retail-led real estate, has announced its acquisition of The Shops at Palm Desert which comprises nearly one-million square feet of traditional, enclosed shopping mall space. The mall was built in 1982, renovated in 2013, and is currently anchored by JCPenney, Macy’s, Dicks Sporting Goods, and Barnes & Noble.
In 2021, Unibail-Rodamco-Westfield turned over management of the property to Jones, Lang and LaSalle (JLL). Since then, the city of Palm Desert has been engaged with Coldwell Banker Richard Ellis (CBRE) real estate advisory services to strategize on redevelopment of the site, conduct market research, and to maintain tenant relations. After the city completed a market demand study for the site it has been helping to find partnering options with a master developer to identify the best redevelopment strategy options.
In a pitch document prepared for the city by CBRE in 2022, the stated strategy was to find a “successful partnership that will result in the joint development and adoption of a Specific Plan and Environmental Impact Report for the City Council to consider; ultimately removing development obstacles and preparing the site for development.” The city document, which presented two “concepts” for redevelopment approaches, also noted that the “City staff is receptive to discussions on property tax and sales tax sharing, transient occupancy tax rebates, expedited permitting, and removal of development barriers. Once a comprehensive proposal has been developed, City Council consideration will be expedient.”
PRCP has stated its vision is to conceptualize, design, and develop an innovative master plan for the 72-acre property that will transform it into a vibrant, mixed-use destination and create an iconic civic gathering place that contributes to the existing character of the Coachella Valley. With a strong presence throughout Southern California, PRCP is well-versed in the lifestyle preferences of the market and expectations of the retail experience, thereby accelerating the time it will take to move its vision from conceptualization to reality,
“PRCP specializes in evolving real estate for the next generation, and we are very excited to apply our proven value-creation strategy to The Shops at Palm Desert,” stated Steve Plenge, Chief Executive Officer of PRCP. “We see so much embedded potential in the asset, which we plan to unlock by unencumbering underutilized retail space and adding a mixed-use component that includes green space, multi-family, entertainment and more. We look forward to getting started and working in partnership with the City of Palm Desert throughout this process.”
The acquisition of The Shops at Palm Desert marks the second property PRCP has acquired in 2023. The Shops at Palm Desert will be the fourth repositioning project the Company has announced since fall 2022.
“There has been a fundamental shift in the way retail owners and operators approach new markets. We look for communities that understand and acknowledge that the retail landscape has changed drastically over the last 20 years,” said Oscar Parra, Chief Financial Officer of PRCP. “Instead of just accelerating goods and services, these cities are asking, ‘What should we be accelerating?’. For many markets, the answer is housing, green spaces and communal areas – or mixed-use destinations – that create an environment of live, work and play for residents, and cities are choosing to partner with us because of our extensive track record of designing viable real estate for the future.”
“The City of Palm Desert welcomes Pacific Retail’s acquisition and expresses optimism at the prospect of redevelopment opportunities at this prime location. We believe that this significant investment aligns with our city’s long-term growth goals and reflects the confidence that developers have in the economic vitality of Palm Desert. Our team is eager to review Pacific Retail’s forthcoming plans and see how they will contribute to the overall enhancement of our community’s commercial landscape,” said Todd Hileman, City Manager for the City of Palm Desert.
Pacific Retail Capital Partners (PRCP) is one of the nation’s premier retail operating groups of large open- air and enclosed shopping centers, with more than $3.0 billion in assets under management across the United States. Based in Southern California, the company’s portfolio encompasses more than 20 million square feet. PRCP is dedicated to evolving real estate for the next generation by working with the communities it serves to design master plans that transform its assets into high-performing mixed-use destinations. The vertically-integrated company provides end-to-end sourcing, assessment, underwriting, valuing, developing, marketing, design and asset management services.
