Shopping Center Business

MAY 2015

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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298 • SHOPPING CENTER BUSINESS • MAY 2015 Randall Shearin With world class centers as the company's strategy, Westfeld is currently investing more than $1.7 billion in several centers in California to enhance their performance. Westfeld Focuses On California A cross its international portfolio, Westfield has focused on creating iconic properties in world class cities around the world. The company has an incredibly productive portfolio that it constantly enhances to perform at its best. In California, the company is launching major initiatives at three centers — West- field Valley Fair, Westfield Topanga and Westfield Century City — to add to the mix of uses and offer more world class retail for the top market areas in which the centers are situated. Making a move on Silicon Valley's growing population and affluence, West- field is completely overhauling its Valley Fair super-regional center in San Jose. The company has already added a wing of luxury tenants to the center, and plans on adding more with an additional expansion that will take place over the next two years. Valley Fair was originally built by The Hahn Company and opened in 1985, an- chored by Macy's, Emporium and Nord- strom. Westfield and JP Morgan bought the center in 1998 and have constantly evolved the center since. In 2001, Nor- dstrom opened a larger store, and West- field opened a major expansion in 2002. Since that time, San Jose has grown to become the 10th largest city in the Unit- ed States and the third largest in the Bay Area. Add to that the wealth that nearby technology companies bring to the area — the market has the highest amount of millionaires and billionaires in the coun- try, despite their low profiles. The area is under-retailed; Westfield currently has to turn away tenants who want to locate in the market. With sales and traffic at the center at an all time high, Westfield broke ground in February on the first phase of its ex- pansion, which will add a parking garage that will replace two older garages being demolished to make room for more retail space. In 2016, it will break ground on the retail component of the expansion, ultimately adding 600,000 square feet at an investment of $600 million. In addi- tion to a new, 150,000-square-foot, three level Bloomingdale's anchor store, the expansion will create a parallel retail cor- ridor, essentially creating two malls under one roof that will be laid out in a loop fashion. Westfield is also adding a new restaurant precinct for a number of sit- down restaurants on the front of the cen- ter. ShowPlace ICON Cinema will open a new luxury theater at the center. When it Westfield plans to add a significant addition on to Westfield Valley Fair in San Jose. The Silicon Valley market has boomed in recent years, causing a shift in the retail mix. Over the last 18 months, Westfield Valley Fair created a luxury collection wing, which included exterior signage for a number of the center's prominent retailers.

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