27.santaanita/pettersson/dt1st/mark2nd

No. 27

Meditrust Sells Santa Anita

Meditrust Cos. bet big on Santa Anita and lost its shirt.

Only a year ago, the Massachusetts-based real estate investment trust acquired Santa Anita racetrack, along with other properties in Arcadia, for a reported $458 million. Of that, about $175.5 million was spent for the track itself, and Meditrust pumped in an additional $12 million in improvements.

Debt and faltering stock prices forced the company to restructure and sell off some of its holdings including the track, which was purchased by Canadian auto-parts magnate Frank Stronach for $126 million (representing a loss of about $62 million for Meditrust). Meditrust’s other Arcadia properties, including the Santa Anita Fashion Park, were not included in the deal.

Stronach, a native of Austria, is a breeder and owner of racehorses, including Breeders’ Cup winner Awesome Again. He wants to transform Santa Anita, developing a theme park and pedestrian shopping area adjacent to the track.

Under Meditrust’s ownership, Santa Anita managed to reverse a decline in attendance through a new marketing campaign. The company also developed plans for a number of improvements, including a 500,000-square-foot retail center and a multiplex theater. Stronach is expected to modify those proposals.

Edvard Pettersson