A New York real estate company has acquired the Sunrise Mall in a deal that could lead to major upgrades at the 43-year-old Citrus Heights shopping center.
Real estate sources said Friday the 1.1 million-square foot center was acquired by Spinoso Real Estate Group following a sales effort that last nearly a year.
Robert Cole, a senior vice president with the JLL brokerage company that listed the property, confirmed that a sale of the center closed escrow on Friday afternoon. But he declined to identify the buyer or a sales price.
He said the property “attracted broad investor interest from local and regional as well as national investors.” And he added that the deal “offers the opportunity to reposition a key asset centrally located within one of our region’s strongest retail trade areas.”
Officials with Spinoso would not be reached for comment Friday, but others identified that firm as the mall’s new owner.
The seller was the Steadfast Cos. of Newport Beach, which acquired the center in 2008 for an estimated $110 million.
The sales price this time was probably closer to half that amount, said retail broker Steve Edwards, who consulted with one company that made an unsuccessful bid for the property.
He said Sunrise has “obvious” benefits in terms of high traffic counts along Sunrise Boulevard. But he said it has become “tired” in recent years as consumer dollars have flowed to more vibrant lifestyle centers in Folsom and Roseville.
He said the new owners will likely pursue a redevelopment of the fortress-like mall, aimed at making it more open while bringing in different kinds of retailers and new uses.
“I absolutely believe it will be redeveloped in some capacity– not scraped from end to end but redeveloped with some mixed uses, including residential as part of it,” he said.