REDLANDS: Mall sold; buyers intend to add residential units

From Press Enterprise 7/23/14

Redlands Mall, empty except for a CVS Pharmacy, was bought by a San Diego-based firm

A San Diego-based investment company has purchased the Redlands Mall with an eye toward adding residential units to the downtown facility, a city spokesman said Wednesday.

Brixton Capital, a branch of investment firm Brutten Global, has closed escrow and acquired the property, which has been closed for four years, for an undisclosed price. The enclosed mall is located on 11 acres bordered by Orange Street, Redlands Boulevard and Brookside Avenue.

According to the city’s statement, Brixton Capital plans to convert the mall to a mixed-use development that includes both residential and retail development.

The seller of the property, the Howard Hughes Corp., acquired it in 2010 in a spinoff deal as part of a bankruptcy reorganization plan filed by General Growth Properties, which also owned several other Inland Southern California retail properties. The mall had been having trouble attracting tenants for years.

The only business operating in the mall building now is a CVS Pharmacy, which has an outside entrance. Also, a separate building on the property houses a Denny’s restaurant, a Mattress Showroom and a Union Bank branch.

The mall has more than 173,000 square feet of space that can be leased, and the freestanding building has an additional 12,586 square feet.

According to its website, Brutten Global, which was founded in 1978, specializes in “out-of-favor, inefficiently operated, often overlooked, somewhat contrarian assets across a variety of investment classes.”

The company’s portfolio includes retail properties and apartments, and it was an investor involved in the purchase of the NBA’s New Jersey Nets team in 2004. Brutten Global has holdings in 16 states and four foreign countries.

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