HomeMy WebLinkAbout2025-09-18; The Shoppes at Carlsbad - Ownership Transition (District 1); Barberio, GaryTo the members of the:
CITY COUNCIL
Date't I~;)$ CA V CCV
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September 18, 2025
Council Memorandum
{city of
Carlsbad
Memo ID# 2025051
To: Honorable Mayor Blackburn and Members of the City Council
From: Gary Barberio, Deputy City Manager, Community Services
Curtis Jackson, Real Estate Manager
Via: Sheila Cobian, Assistant City Manager ~
Re: The Shoppes at Carlsbad -Ownership Transition (District 1)
This memorandum provides information about the recent ownership change and subsequent
redevelopment interest at The Shoppes at Carlsbad, located at 2525 El Camino Real.
Background
The Shoppes at Carlsbad is a regional shopping center located south of Highway 78 and west of
El Camino Real. Ownership of the property is unique in that the mall itself is privately owned
while the 67.27 acres of parking lot properties that surround and serve the mall are owned by
the city.
The city's Real Estate Strategic Plan, approved by the City Council in 2017, recommends that the
city pursue the lease or sale of the mall parking lot properties. On January 30, 2024, the
City Council approved the rezoning of the parking lots to allow multi-family housing consistent
with the city's 2021-2029 Housing Element (Attachment A}.
During this time the previous mall property owners, Brookfield Properties, through its affiliate
RPI Carlsbad, approached the city requesting to negotiate terms of either a lease or purchase of
the city-owned parking lot properties. The City Council on March 14, 2023, approved a
resolution identifying the city's project team and the future negotiating agents responsible for
exploring options for potential disposition of the parking lots, including first initiating
compliance with the State Surplus Land Act (Attachment B}.
Based on the City Council's direction, staff worked with the Department of Housing and
Community Development (HCD} to declare the property as "exempt surplus land" under the
state's Surplus Land Act (SLA} requirements. On June 24, 2025, the City Council adopted a
resolution declaring the parking lot properties as "exempt surplus land" under Government
Code Section 54221{f}(1}(J) (Attached C). The HCD subsequently reviewed the city's findings
and confirmed the "exempt surplus land" declaration.
Discussion
Brookfield Properties informed staff in March 2025 that the shopping center was under
contract for sale and in August 2025 staff were approached by the new owners, SteelWave,
indicating that they officially closed escrow and are the new owners of the old Sears building,
Community Development Department
1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 442-339-2836 t
Council Memo -The Shoppes at Carlsbad -Ownership Transition
September 18, 2025
Page 2
the in-line mall space and the retail buildings near the corner of Marron Road and El Camino
Real. The JC Penney and the two Macy's buildings were not a part of their acquisition.
SteelWave introduced members of its employee team on August 18, 2025, along with
contracted planners and architects who will be assisting in the evaluation of the redevelopment
of the property. City staff provided background on the rezoning of the site and an overview of
the permitting process, property challenges and CEQA requirements should an application be
submitted. Staff continue to make themselves available to support SteelWave as they explore
options for the future of the mall property.
Next Steps
Staff anticipate that SteelWave will submit a letter within the coming months requesting the
initiation of negotiations on the parking lot sites. Since the previous City Council authorization
specified negotiations with Brookfield Properties, an updated City Council authorization will be
required. Once the request letter is received from SteelWave, staff will docket the item for
City Council action.
Attachments:
A. City Council Staff Report, dated January 30, 2024 (on file with the City Clerk's Office)
B. City Council Staff Report, dated March 14, 2023 (on file with the City Clerk's Office)
C. City Council Staff Report, dated June 24, 2025 (on file with the City Clerk's Office)
cc: Geoff Patnoe, City Manager
Cindie McMahon, City Attorney
Jeff Murphy, Community Development Director