Los Angeles

The CIM Group announced its plans to purchase the Baldwin Hills Crenshaw Plaza last week, and the industry clamored with questions. The 869,000-square-foot regional mall has been vacant, including both of its anchor tenants, Sears and Walmart. Now, CIM Group has plans to re-imagine the property.

"Baldwin Hills Crenshaw Plaza is a rare opportunity to reposition a large, centrally located property directly opposite a transit station in a mature Los Angeles community," Shaul Kuba, co-founder and principal of CIM Group," tells GlobeSt.com. "CIM is drawing on the expertise of its leasing, property management and development teams to create a thoughtful plan for the future of the property."

The current retail closures and the economic dislocation caused by the pandemic did not factor into CIM's decision to purchase this asset. It was already considering the purchase before the emergency closures in March, and sees strong opportunity to redevelop the property. "We believe it offers a rare opportunity to reposition a large, centrally located property directly opposite a transit station in a mature Los Angeles community," says Kuba. "Based on our knowledge of and experience in the Los Angeles market we believe this is an opportunity for us to add value to the property, and enhance the community and the region."

The asset was entitled by the prior owner for residential units, but CIM doesn't believe residential units are a good fit for the property. "We believe people should be cautious about changing commercial property to residential use and since this has been a long-standing commercial property, our current thinking is it should continue as such," says Kuba. "Retail is vital to the area and we hope that every tenant currently at the property—retail, movie theatre, restaurants, will reopen."

CIM doesn't have a set plan for the property, yet, but it is considering creative office space and more modern retail. "At the present, CIM believes it is valuable to retain the use as a commercial property," says Kuba. "That may include transforming the two large vacant department stores into creative office space, a use that would bring a larger group of daytime customers to support the retailers and restaurants. We are continuing our diligence on the property."