Westwood Bullocks Site Going on the Market

By DANNY KING

Staff Reporter

Madison Marquette, Westwood Village’s largest retail landlord, is selling its Bullocks/Macy’s redevelopment on Weyburn Avenue and may be shopping the remainder of its Westwood portfolio, according to real estate sources.

The Cincinnati-based company has enlisted Eastdil Realty to sell its interest in the 30-year ground lease and its option to buy the 212,000-square-foot project from landlord Federated Department Stores Inc.

“There’s nowhere to go they have long-term leases and the rate of appreciation is fixed,” said Larry Taylor, president of Malibu-based Christina Development Corp. and a minority partner in the Westwood portfolio partially owned and managed by Madison Marquette (though not in the Bullocks site).

Madison Marquette officials did not return calls seeking comment, and Eastdil’s Chris Hoffman, who has the listing, would not comment on the process or the leasehold valuation.

While the property at 10861 Weyburn Avenue could be worth between $65 million and $70 million, sources say, little is known of the terms of the ground lease with Federated.

Madison Marquette acquired the ground lease in 1999 and invested $32 million renovating and dividing the site, signing Ralphs Fresh Fare, Best Buy and Longs Drugs and Home Depot’s EXPO Design Center. EXPO and Ralphs, with 94,000 square feet and 51,000 square feet respectively, opened last fall, while Longs, with 18,000 square feet, opened this April.

Madison Marquette’s money partner, Credit Suisse First Boston, prefers short-term investments, which could be one reason for the listing sale, according to one source.

Credit Suisse officials did not return calls seeking comment.

The source added that Casden Development’s proposed mixed-use development across Weyburn Avenue could adversely affect the Bullocks property’s performance, hence the value. Casden is trying to get city approval to close Glendon Avenue, which dead ends at the site, in order to build subterranean parking.

Madison Marquette also is believed to be in the early stages of shopping the rest of its Westwood portfolio, which is 180,000 square feet of mostly retail space predominantly on Westwood Boulevard and of which Credit Suisse is a majority partner, said sources.

Madison Marquette purchased the portfolio for about $35 million in 1997 and it could be worth as much as $50 million today.