Prism Places Brought on to Manage Santa Monica Place

Santa Monica Place’s new property manager wants to breathe new life into the ailing mall, after Macerich defaulted on a $300 million loan tied to the property last year.

Prism Places said Thursday the court-appointed receiver for the Santa Monica open-air shopping center, Trigild, named Prism Places to manage the 527,000-square-foot property.

Trigild recently took over the mall after Macerich defaulted on its Wells Fargo loan last year. In November, Morningstar Credit reported the center’s value dropped about 35 percent to $255 million since April 2024, when Santa Monica Place entered special servicing.

Macerich CFO Scott Kingsmore blamed the city’s “continuing issues,” calling it “under water” in an interview last June with fashion trade publication WWD. The executive went on to say, “trying to figure out the end game” on the property “was just too obscure.”

Macerich began re-tooling its real estate strategy last March, when it appointed Jack Hsieh as president and ceo. Under Hsieh, the focus has been on centers Macerich believes hold the most long-term potential, while dropping others from its portfolio.

Among the Macerich malls viewed as growth vehicles is the Los Cerritos Center, where Hsieh told analysts last month the company is considering the possibility of a new anchor in the former Sears location, while potentially selling off land at the mall that’s entitled for residential.

For Santa Monica Place, the center has seen major anchors, such as Bloomingdale’s and ArcLight Cinemas, leave. Meanwhile, the neighboring 3rd Street Promenade has also seen its fair share of tenant turnover.

“While challenges have led to vacancy at both Santa Monica Place and its neighboring retail district, 3rd Street Promenade, the city and state have made crucial policy changes that will allow for Santa Monica’s recovery,” Stenn Parton, Prism’s founder and CEO, said in a statement.

Parton went on to say the company plans on “bringing great brands and restaurants back” to the center.

Parton was traveling and could not be immediately reached for comment Thursday to elaborate on the policy changes or tenant merchandising strategy.

He acknowledged in his prepared statement the plans for the center are running up against a ticking clock to seize on opportunities from major events set to bring thousands to Los Angeles and the surrounding areas.

That starts off with next year’s FIFA World Cup taking place in Inglewood at SoFi Stadium followed by the 2028 Olympics, the latter of which will place the mall and city “on display,” Parton said.

Prism’s portfolio includes a mix of owned and managed real estate in the country’s western and Sun Belt markets. In California, that includes Hermitage Rodeo in Beverly Hills, Paseo Nuevo in Santa Barbara, Runway in Playa Vista and Pasadena Commons in Pasadena.