Having experience with these types of underutilized assets, Milan Capital purchased the property in August 2001 and commenced with a significant remodeling of the structures including façade work to give the buildings the articulation and signage necessary to address the visibility issues created by the center’s layout. Overly deep spaces were consolidated to create large sub anchor spaces and spaces with less depth were subdivided to create high value spaces along the highly trafficked Euclid Avenue. The landscaping was completely renovated, removing overgrown foliage and replacing it with attractive but less dense palms.

Through Milan’s aggressive leasing efforts, the center was re-tenanted with Quiznos, Starbucks, American General Finance, UPS Stores, H&R Block, the United States Government for an armed forces recruiting center, and One Dollar City (a local discount retailer with multiple locations in Southern California.) A variety of other tenants were also signed to the center boosting the image and occupancy that generated significant buzz in the retail trade area.

The Results

In partnership with East West Bank, who funded the purchase and construction loans for the property, Milan bought Euclid Plaza at a discounted price. Less than 2 ½ years after the purchase, the property was 99% occupied and thereafter claimed a waiting list of tenants wishing to find co-tenancy with 99 Ranch Market in this busy center. Capitalizing on the increase in cash flow from the property, as well as the market’s overall upward movement, Milan opted to sell the Euclid Plaza in 2004. Investors partnering with Milan during the 2 ½ year hold period quadrupled their equity and enjoyed cash flow throughout the hold period.