Somera Invests $70M in Victorville Mall

The single-story center, at the intersection of Interstate 15 and Bear Valley Highway, is anchored by JCPenney, Mervyn's, Sears, Harris-Gottschalks, Barnes & Noble and a 10-plex Cinemark. The center, built in 1986, is 98% occupied and generates sales in excess of $350 per sf per year, according to the buyer.

Steve Plenge, Somera's managing director, says the property builds upon a Southern California portfolio that includes the La Cumbre Plaza Mall in Santa Barbara and Burbank Empire Center in Burbank. According to Plenge, Somera Investment Partners has two other regional malls under contract and expects to close on them within 90 days. He says the firm plans to invest about $200 million to $300 million annually, with up to four additional properties targeted for acquisition in 2003.

The Inland Empire of California is one of the few regions in the state that has posted job growth throughout the economic downturn. Plenge says the combination of job growth with population growth provides "excellent demographics that make the area appealing to Somera."

Somera Investment Partners is a majority-owned subsidiary of Santa Barbara-based Somera Capital Management LLC. David Brown, president and CEO of the parent company, describes the Victorville property as a solid investment as it is, but he notes that the company expects to add value through expansion, tenant repositioning and other facets of the firm's business plan. The Victorville purchase included 25 acres of adjoining undeveloped land, Plenge said.

Somera usually targets its acquisitions for redevelopment or repositioning in markets nationwide. The Somera Investment Partners subsidiary focuses on secondary regional and super-regional malls, lifestyle centers and unusual urban buildings. Somera Capital Management, established in 1994, maintains a diversified portfolio of all product type, valued at more than $700 million, primarily in the Western US.