mall only 55% full plans to 'revitalize'

ANAHEIM – GardenWalk, the struggling outdoor mall across from Disneyland that went through bankruptcy last year, has fallen to a 55-percent occupancy rate and is trying to redefine itself to survive.

On Tuesday night, mall managers were granted permission by the City Council to dramatically redefine the tenant mix at the mall, scaling way back on retail space and making it more of an entertainment and dining destination.

The amendment to the city's general plan reduces the amount of retail space by 140,000 square feet. It increases entertainment space by 112,000 square feet and restaurant space by 50,000 square feet. Required parking spaces will remain at 3,200.
Since the mall at 321 W. Katella Ave. opened in 2008, the restaurants facing busy Katella Avenue have thrived, including The Cheesecake Factory, California Pizza Kitchen, Bubba Gump Shrimp Co. and others.
But the retail shops that extend north to Disney Way were slow to open. And many of those that did eventually open struggled mightily – and shuttered within months.
Officials at The Related Companies, which has managed the mall since spring 2010, said allowing for more dining and entertainment options will help attract more tourists and locals to GardenWalk – and give the patrons a reason to stay for hours.
City Council members agreed.
"We approved the (initial) plans for GardenWalk on what was exciting at the time and what was expected to succeed – times have completely changed," said Councilman Harry Sidhu. "GardenWalk is a jewel in this city. ...We want to make sure this jewel doesn't rot in our own backyard."
In 2010, GardenWalk defaulted on a $210-million construction loan. And when a $70-million opening bid failed to attract any interest, the mall fell back to bank ownership. A new theater operator took over the 14-screen cinema after the bankruptcy.
The retail component has continued to struggle. The entertainment aspect at the mall includes bars and a bowling alley.
Officials with Related said they have strong interest from companies to add to that dining/entertainment mix, but they didn't provide details at Tuesday's meetings. They said Related has had success with other similar malls nationwide, including City Place mall in West Palm Beach, Fla., which they said is now 96 percent leased.
GardenWalk, they said, will "revitalize" – and they hope to hold a "grand reopening" by late next spring.