Visalia’s Sequoia Mall is on the sales block in what looks like a fire sale. A Sacramento real estate firm, Core Commercial, listed the property this month with the price tag as “Best Offer” with offers due May 1.The 1974-built mall has 229,000 sf with 44% of that vacant that includes the Tower Plaza. The mall itself is 60% vacant excluding Sears and Hobby Lobby that are owned separately.The sale includes Tower Plaza. The announcement comes after the mall’s current owners KIMCO and Schottenstein have failed to invest in any remodel effort over the years notes Visalia City Manager Steve Salomon.”We talked to the brokers and said we would meet in April with any prospective buyers to encourage them” adds Salomon.
The sale was announced only days after the city council decided to open up south Mooney Blvd for new development in coming years.”You could make the argument that perhaps the next developer will get this property at a reasonable enough price that something good could happen here” says council member Warren Gubler.
This mall has always played second fiddle to its more prosperous sister retail complex- Visalia Mall down the block.But in recent years after the closure of Borders -the mall has been a ghost town.
Although the price of the Sequoia mall is not listed – it was sold in 2003 for 27.4 million to Centro Watt and resold in 2007 to the current owners,listed at the time at $30 million. The county tax collector lists the appraised price today at about $16.9 million. Informed sources says the current owner owes more than $20 million but that it could be sold for half that. Another source says the current sale was likely forced by the mall’s lenders.
A major overhaul of the mall is necessary most agree and any deal requires the active cooperation of Sears and Hobby Lobby in what could be a complicated deal.On the plus side a cheap land price could draw good demand right now but the buyer/developer needs to be a sophisticated player. Sears needs a new store but times are not great for this company. There are several vacant out parcels in this mall including the vacant Longs Drug Store on Caldwell .One bright spot – a new gym will open in the back of the property soon.
The most obvious choice for an anchor in a remodel – a new Regal 12-plex or Edwards Theater like was done on Blackstone in Fresno. Regal leases this mall’s older movie theater now.