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Mayor Steve DeBrum, during his State of the City address Jan. 25, announced that the center’s owner Poag and McEwen has decided to sell, and that its broker will start a national search for a buyer.
“At the end of the day, I really think this is going to be a win-win,” DeBrum said in an interview after his speech. He added that a new owner can bring fresh perspective to the center, which has struggled to fill its vacancies.
Promenade Shops opened just as the housing market collapsed and the recession hit. It experimented with outlet shops, but then San Francisco Outlets opened in Livermore.
Still, broker Daniel Wald of Cushman Wakefield, said he is very optimistic the center will sell, even with a 33 percent vacancy rate.
“It’s phenomenally attractive,” Wald said. “It’s in remarkable shape considering so much is vacant, which is unusual.”
Wald also said the promise of new housing in Manteca and Lathrop will be attractive to a new buyer.
While the center was behind the curve on some trends, Wald said having experience-based attractions such as Bass Pro Shops, AMC Theatres and Red Robin have helped it compete with e-commerce for shoppers’ dollars.
“It’s not going to be turned around overnight,” Wald said. “But a new owner will have new energy and new ideas.”
DeBrum said people in the community have expressed interest in seeing more restaurants and specialty-item stores.
Tato’s Mexican Restaurant opened recently and Fitness Evolution is scheduled to 30,000-square-foot space later this year.
Both DeBrum and Wald said entities had shown interest in buying the center even before its marketing campaign started.