PHOENIX — The revitalization of a once-struggling West Valley mall will continue under new ownership.
TriGate Capital on Wednesday announced the sale of Goodyear’s Canyon Trails Towne Center to the Santa Cruz Seaside Company in a $41 million deal.
Dallas-based TriGate had owned the 90-acre property on the northwest corner of Cotton Lane and Yuma Road since it was purchased in 2013 for $23 million, according to a press release.
“The Santa Cruz Seaside Company is thrilled to invest in Canyon Trails Towne Center and the town of Goodyear,” Karl Rice, president of the California-based company, said in the statement. “This community is thriving and we look forward to building on the success of the TriGate Capital team.”
Santa Cruz Seaside Company’s most notable venture was the Santa Cruz Beach Boardwalk amusement park in central California.
Canyon Trails opened under adverse conditions in 2008, at the height of the Great Recession. Two major tenants – Home Depot and Kohl’s – decided not to move in and a third, Sports Authority, quickly left.
TriGate said market conditions changed in 2019 when a major redevelopment plan was implemented.
As part of the revitalization, the Home Depot site was rezoned and earmarked for residential development. Construction of 284 multi-family housing units is expected to begin in two weeks.
“The momentum created by securing the multifamily component has changed the narrative of the center and allowed us to scale up our leasing efforts,” David Malin, principal consultant for TriGate, said in the release.
“In mid-2022, with the help of SRS, we achieved 100% occupancy in the ‘shopping district’ and signed deals with nine new pad users.”
Canyon Trails is now anchored by Super Target, Ross, PetSmart and Pottery Barn Outlet.
Santa Cruz Seaside Company plans to keep Malin and the entire team of development consultants on board to continue completing the refit.
The mall has over 200,000 square feet available for construction and is looking to add a specialty grocery store, large-format retailers, restaurants and a hotel.
“The last piece of the puzzle is to fill in the missing holes in our big box area, which is happening right now,” Malin said. “We are negotiating letters of intent with several national retailers.”