Pacific View Redevelopment | $11.4M LP Equity Offering

The Opportunity

Buy a Finished Story at an Unfinished Price

Dead department stores are the cheapest large boxes in American real estate, and the hardest to fill. This one is already filled. The heavy lifting of the last four years, control of the asset, entitled use, and five signed national leases, is done. Centers Dynamic Partners acquired the 3295 East Main Street parcel in 2022; it is a separately owned parcel adjacent to the Macerich-owned Pacific View Mall, and CDP executed all five leases directly. LP capital funds the final step: an eight-month renovation and lease-up of the last two suites.

2022 · What We Bought

An Empty Sears Box

Vacant 161,937 SF anchor at a busy mall
Zero income, deferred cosmetics
Priced like a problem: $16.2M ($97.84/SF)
Every mall's least-loved real estate

2028 · What Investors Own

A Pre-Leased Entertainment Center

Round 1 flagship on a 15-year lease (61,006 SF)
Food hall, trampoline park, kids' play, Spaces
~$3.1M NOI growing to $4.0M on contract
Projected $283.44/SF exit vs $213.92/SF basis

$213.92/SF

Below Replacement Cost

The all-in basis is materially below what it would cost to build this box today, and 25% below the projected exit value. The margin of safety is in the purchase, not the projection.

133K SF

Signed Before You Invest

Five national and regional tenants are under signed leases. Only suites 3B and 3C (28,944 SF) remain, and an 18,000 SF medical/office user is in active negotiations for the two suites combined and reconfigured.

6.7M

Visits Delivered by the Mall

Target, Trader Joe's, and Macy's next door generate 6.7 million annual visits (Placer.ai). The traffic problem is already solved.

Why Now

Experiential Retail Is the Scarce Asset of This Cycle

Most allocators are underweight retail, and that is precisely the opening: almost no new retail has been built in California in a decade, while entertainment operators expand into the exact 12,000 to 60,000 SF formats this building offers. This is not a bet on the retail sector. It is one pre-leased asset at a basis below replacement cost, in a category the internet cannot ship: bowling, arcade play, trampolines, children’s birthdays, ramen, and a desk near home.

$110K

Median Household Income

Ventura County median household income is $109,797 (U.S. Census, 2024) in California's safest large county, which holds the lowest crime rate among the state's 16 largest counties (California DOJ, 2024), with 62,700 vehicles per day on East Main Street.

19K

Jobs at the Naval Base Alone

Naval Base Ventura County, the County, Community Memorial, Amgen, P&G, and Patagonia anchor a diversified, recession-resistant base of roughly 318,000 nonfarm jobs countywide (California EDD, 2026).

12.8%

Entertainment Center Market Growth

The US family and indoor entertainment centers market was valued at $11.9 billion in 2024 and is forecast to grow at a 12.8% compound annual rate through 2032 (USD Analytics), the demand tailwind behind the signed tenant roster.

Scarce

Competing New Supply

Coastal zoning, entitlement timelines, and current construction costs argue against a competing large-format entertainment box being built in Ventura at today's rents, a supply constraint that protects the tenant roster and the exit.

The Property

The Front Door of a 886,000 SF Regional Mall

The former Sears anchors the western edge of Pacific View Mall on East Main Street, with its own street frontage, signalized access, and reciprocal parking across the center.

Aerial of Pacific View Mall with the Sears parcel outlined

Address3295 E Main St, Ventura, CA 93003

Rentable SF161,937 SF

Year Built1999

ZoningC1-A Intermediate Commercial

Access7 access points on 3 streets

Traffic62,700 VPD on E Main St

ParkingReciprocal across the center

Highway0.5 mi to US-101 / SR-126

Tenancy

The Rent Roll Is the Underwriting

Projected returns rest on leases that already exist, not on market assumptions. Per-tenant contract rents are disclosed in the full Offering Memorandum; the stabilized total and vacant-suite underwriting are shown here. Escalations compound through the hold.

Suite	Tenant	SF	Initial Rent /Yr	Status
2A-C	Round 1 USA (bowling & amusement)	61,006	Full OM	Signed · 15-yr
1C	Round 1 Yuu (Japanese food hall)	22,410	Full OM	Signed · 15-yr
3A	Spaces by IWG (flexible workspace)	25,000	Full OM	Signed
1B	Altitude (trampoline park)	12,878	Full OM	Signed
1A	Kids Empire (children's play)	11,699	Full OM	Signed
3B	Vacant, underwritten at $24.00/SF	12,000	$288,000	In lease-up
3C	Vacant, underwritten at $24.00/SF	16,944	$406,656	In lease-up
Roof	Solar income	–	$50,000	Contracted
	Total at stabilization	161,937	$3,357,773

Round 1, with its Yuu food hall, underwrites 44% of the building’s income on 15-year terms. Round 1 has grown from its first US location in 2010 to more than 50 stores nationally, roughly 80% unit growth over the past six years, and its arcade-bowling format is the proven traffic engine for exactly this kind of former-anchor conversion.

Precedent

Round 1 Has Done This Exact Deal Before

Re-tenanting a dead department store with Round 1 is not a novel bet; it is a repeatable national playbook with directly comparable outcomes, including the same Sears-box fact pattern as Pacific View.

Mall	Prior Anchor Space	Round 1 Outcome	Why It Matters Here
The Promenade Temecula, CA	Former two-level Sears	~50,000 SF on the first floor, paired with new small-shop retail and restaurants	Direct precedent: an entertainment anchor carved out of a legacy Sears box at a healthy regional mall
The Florida Mall Orlando, FL	Former Sears	Round 1 entertainment center plus a food hall component	The same Round 1 plus food hall pairing planned at Pacific View, inside a former Sears at a top Simon property
Moreno Valley Mall Moreno Valley, CA	Upper-level space vacant since 2007, no grade-level access	43,700 SF Round 1, citing theater co-tenancy as a draw	Evidence Round 1 can re-activate a mall's hardest, longest-vacant space

14–27%

The Anchor Halo Effect

A causal study of anchor stores across 600+ London neighborhoods found anchors lift customer traffic at nearby non-anchor tenants by 14.2% to 26.5%, the co-tenancy effect this redevelopment is built on. The study covers anchor stores generally; its findings are not specific to entertainment anchors.

50+

Round 1 US Locations

From a first US store in 2010 to 50+ today, with US sales of approximately $400M in fiscal 2024, comparable-store sales up 28% year over year in fiscal 2023, and a stated plan to grow to 150 to 200 US locations (Round One Corporation disclosures; USD Analytics, 2024).

High

Tenant Switching Costs

Bowling lanes, trampoline courts, and coworking build-outs are purpose-built capital investments that make these leases durable independent of retail sentiment.

Sources: Orlando Business Journal / WhatNow (2025); Patch Temecula (2018); Spinoso Real Estate Group; Round One Corporation financial disclosures (FY2024); academic anchor-store study, London.

Business Plan

Five Steps, All of Them Scheduled

No entitlements, no rezoning, no speculative demand. The scope, budget, and tenant delivery dates are fixed in the leases.

Oct 2026

Close & Recapitalize

$34.6M total capitalization: $22.0M senior loan plus $12.6M of equity.

Nov 26 – Jun 27

8-Month Renovation

$11.3M renovation and $3.4M of tenant improvements, fully budgeted with reserves.

Through 2027

Tenants Open

Round 1 and the food hall first, then Spaces, Kids Empire, and Altitude.

FYE Oct 2028

Stabilization

First stabilized year at roughly $3.1M NOI; contractual escalations compound from here.

Oct 2033

Exit

Projected $45.9M gross sale, $44.1M net, at a conservative 8.5% cap rate.

Financials

Moderate Leverage, Contracted Cash Flow, a Cushioned Exit

Capital Stack: $34.6M Total

The sponsor invests $1.3M of its own capital alongside LPs.

Senior Loan

$22.0M

LP Equity

$11.4M

GP Co-Invest

$1.3M

Uses: $16.2M acquisition · $11.3M renovation · $3.4M tenant improvements · $1.4M leasing commissions · $0.7M soft costs and reserves · $1.7M financing costs.

Projected Net Property Cash Flow ($M)

Hold years 1 through 7. Year 7 excludes the $44.1M net sale proceeds.

18.3%

Projected LP IRR

Net to the LP after the preferred return and promote.

2.44x

LP Equity Multiple

$11.4M invested, a projected $27.8M returned: $16.4M of LP profit over the hold.

12.0%

Levered Cash-on-Cash

Average annual cash yield once stabilized, distributed from property operations.

The Exit Is Underwritten Against Ourselves

The projected sale assumes an 8.5% cap rate on roughly $3.9M of exit-year NOI. Comparable stabilized retail, including the sponsor's own break-up exits, has traded far richer. Every 50 basis points of cap-rate improvement adds roughly $3M of value, all of it above the projections shown here.

8.5% cap · underwritten

$45.9MThe number in the projections

8.0% cap

$48.8M+$2.9M vs underwriting

7.5% cap

$52.0M+$6.1M vs underwriting

Sponsor's last break-up exit

4.8%Trafalgar Square, Escondido

Structure

LP-First Waterfall, No Hidden Economics

Return of capital. 100% of distributable cash goes to equity until all capital is returned.
8% cumulative preferred return to LPs before the sponsor earns any promote.
80/20 LP/GP split on profits above the pref. The GP earns its promote only after LPs are made whole and preferred.

Built for Private Capital

Structured for Family Offices and Accredited Investors

This offering is deliberately not a fund. It is direct ownership in one named asset, sized and papered for private capital.

A Single Asset, Not a Blind Pool

You are underwriting one property with signed leases, not a strategy deck. Walk the building, read the leases, and see the tenants trading next door before you commit a dollar.

Direct K-1 Ownership

Investors hold a direct LP interest with K-1 reporting. For taxable investors, redevelopment basis and depreciation may offer meaningful tax efficiency. Consult your own tax advisor; nothing on this page is tax advice.

One Check Can Take the Whole Position

The $11.4M LP position can also be taken by a single family office or joint-venture partner, with governance and reporting scoped to match. A complete data room is ready for diligence on that timeline.

Risk Factors

What Could Go Wrong, and What Stands in the Way

Every projection on this page is a forecast, not a promise. The full Offering Memorandum contains complete disclosures; the principal risks are summarized honestly here.

Lease-up risk: 18% of the building is vacant

Suites 3B and 3C (28,944 SF) are underwritten at $24.00/SF. An 18,000 SF medical/office user is in active negotiations for the two suites combined and reconfigured, and the signed entertainment anchors are the traffic engine that fills small suites. Slower lease-up delays, but does not eliminate, the preferred return.

Construction risk

The scope is a defined 8-month interior and facade renovation, not structural work. The $11.3M renovation budget, $3.4M of tenant improvements, and $0.7M of soft costs and operating reserves are already capitalized inside the $34.6M total.

Tenant concentration

Round 1 (with its food hall) is 51.5% of the building's square footage and 43.9% of its income, on 15-year terms. That concentration is also the deal's anchor: Round 1 operates more than 50 US locations, has grown units roughly 80% in six years, and its format is the proven driver of former-anchor conversions nationwide.

Exit and cap-rate risk

If retail cap rates widen beyond the underwritten 8.5%, exit value falls. The mitigants are the $213.92/SF basis below replacement cost, seven years of contractual NOI growth before the sale, and the sponsor's demonstrated break-up strategy as an alternative exit.

Illiquidity and loss of capital

This is a private placement with a target hold of approximately seven years. There is no public market for interests, distributions are not guaranteed, and investors could lose their entire investment. Commit only capital you can set aside for the full hold.

Review the Full Offering Memorandum

Request the complete OM with the financial model, rent roll, lease abstracts, and full risk disclosures, or schedule a call with the principals to walk through the deal.

George A. Arce, Jr.President & CEO650-745-1434 George@centersdynamic.com

May Wong NovakSenior Vice President650-888-2201 may@centersdynamic.com

Lilian ChenAnalystlilian@proptimal.com