The first phase of repositioning has resulted in what Crown calls "a more vibrant exterior and mix of retailers." What's been done so far constitutes the first phase of revitalizing the center, the company says, with the second phase to include anchor space for a new Bed, Bath & Beyond location on the lower level of the center. The new Bed, Bath & Beyond location will be a key element of the second phase of redevelopment, in which the mall's lower floor will be reconfigured to create spaces for stores that require larger formats than the original in-line shops at the mall.

The overall renovation program is designed to raise the visibility of the property, creating a more pedestrian-friendly traffic flow, upgrading interior common spaces and enhancing the exterior look of the property. Burbank city officials say the improvements at the mall figure as part of the revitalization of the downtown area, for which the city recently formed a new property business improvement district to support the overall redevelopment effort.

Crown bought the shopping mall for $111 million at the beginning of 2003 when "sales were stagnant and the property was in serious need of a facelift," according to Jaime Sohacheski, chairman of the company. When Crown bought it, the center included nearly 800,000 sf in a three-level enclosed shopping mall and more than 442,000 sf of freestanding, perimeter shopping space along the Golden State Freeway between Magnolia Street and East Burbank Boulevard. Sohacheski says Crown, which was one of more than 20 prospective buyers that bid on the property, saw the mall as a "diamond in the rough" that would show more luster with new tenants and repositioning. Since the repositioning and the addition of new tenants, which include a mix of restaurants like P.F. Chang's, Pomodoro and Wahoo's Fish Tacos, sales are up by more than 15% at the mall. Other retailers at the center include Macy's, Sears, Mervyn's, IKEA, AMC Theaters, Barnes & Noble, Sports Chalet, Virgin Megastore, California Pizza Kitchen, Hot Topic, Pacific Sunwear, Victoria's Secret, and Bombay Co. The newest tenants will include Bed, Bath & Beyond and Charlotte Russe, which is anticipated to open in early 2005.

Crown Realty's investment and redevelopment program at Burbank Town Center are part of a strategy of concentrating on of holdings in the downtown Burbank area, which the company views as one of the most promising cities in the Los Angeles area. With the addition of the regional mall to its portfolio, Crown and its affiliates own nearly 1.8 million sf of commercial space on 70-acres in and around downtown Burbank.