More trouble for the Dos Lagos Shopping Center
If the Promenade Shops at Dos Lagos mall falls into foreclosure, a change of ownership is likely. But that won't be as important to the future of the south Corona shopping center as the ability of the upscale stores to withstand the battering of a weak economy and growing competition, retail experts said Friday.
Landlords for the two-year-old, 351,000-square-foot retail center beside Interstate 15 have missed two months of interest payments on a $125 million mortgage. The mortgage is in "imminent default" and being handled by the lender's special servicing department, a Credit Suisse analyst report said this week.
Poag said in the event of foreclosure, it would be up to CW Capital to decide what to do with the center. CW Capital representatives could not be reached to comment.
Stoffel said the Corona center is too geographically isolated and suffers from a shortage of upper-income customers as well as competition from more successful centers with similar "lifestyle" tenants, including Victoria Gardens in Rancho Cucamonga, the new Shoppes at Chino Hills and an expansion planned at The Promenade mall in Temecula. "Even if the economy were still going well, that center would have some issues getting higher sales volumes," he said.
Kaplan said the poor economy accelerated the failure of the center that he had predicted. Not only were the demographics subpar when the center opened, he said, but it had a visibility problem because it is below eye level from the freeway.
So what happens to the home values when this center becomes the "Rio Dos Lagos Swap Meet and Discount Mall"