The chief executive officer of an Ohio-based company that recently purchased the leasehold interest in the Malibu Lumber Yard for $35.5 million hopes to increase occupancy at the shopping center and make other improvements.
“It’s a gem. It’s a special property in a special community," Michael Glimcher, Chairman of the Board and CEO of Glimcher Realty Trust, told the Malibu City Council on Monday.
Glimcher Properties Limited Partnership purchased the leasehold interest from Malibu Lumber LLC for $35.5 million, and escrow is expected to close later this month, according to a release on the company's website Tuesday.
On Monday, the Malibu City Council approved the transfer in a 5-0 vote. The Malibu Lumber Yard was built in 2009 by Malibu Lumber LLC, which was led by Richard Weintraub of Malibu.
Glimcher told the council the company hopes to improve the occupancy from the current 80 percent range to as much as 95 percent.
"We’ve been moving our company to be more upscale," he said.
The company is planning some improvements to the center's communal area, and plans to bring in community events, he said.
"We think things can be better tomorrow than they are today," Glimcher said.
He added that the company is aware of Malibu's proposed and plans to provide a balance of locally owned stores and national retailers.
"We hope to benefit our company, but also to benefit the city with the right balance of local and national tenants," Glimcher said.
According to an economic analysis conducted for the city by Allan D. Kotin and Associates, rent for businesses at the shopping center will only increase slightly over the next 10 years.
“[The city of Malibu] should make the same amount of money over time, possibly more,” Kotin said, adding that the new company may be able to draw in more tenants.
Glimcher Realty Trust, which is publicly traded on the New York Stock Exchange, owns or manages a total of 26 properties in 13 states, with assets of more than $1.8 billion.
The company is based in Colombus, Ohio and was formed in 1994.