Caruso Adds Land at Americana

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Developer Rick Caruso announced on Thursday that his company purchased one of the two properties it needs in order to expand the Americana at Brand mall in Glendale.

Caruso Affiliated Inc. acquired a vacant, 7,500-square-foot building from owner Henry David for an undisclosed amount.

However, the acquisition does not end a controversy over the second property, the site of a 55-room hotel whose owner has refused to sell. Caruso has said he made a $6 million offer for the GoldenKey hotel that is 22 percent above market value.

The issue is now set to go before the Glendale City Council on Jan. 27. Because the hotel is in a redevelopment zone, the council could seize the GoldenKey through eminent domain as long it pays owner Ray Patel market value.

The combined property of the building and hotel would allow for a 140,000 square foot expansion of the 475,000 square foot mall, which got off to slow start after opening in 2008 but has since seen sales pick up.

Patel said that despite the sale of the building and the threat of eminent domain he is still not prepared to sell his hotel.

“The only thing I can say is, I got a new neighbor,” he said. “We want to operate a hotel and the building’s not blighted and we want to make it as successful as possible without any interference.”

In a statement, Caruso said he was pleased with the acquisition of the property and hoped for a “constructive dialogue” with Patel “in the very near future.”

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