GATEWAY TOWNE CENTER
GATEWAY TOWNE CENTER
The City of Compton invested millions in redevelopment funds to build the Compton Auto Plaza that never lived up to expectations and failed soon after opening. The City shifted its strategy to attracting retail but had been unsuccessful in their prior efforts. Our principals identified the 50-acre abandoned site and embraced the opportunity to work in Compton’s challenging and complex urban scene.
Our team recognized the absence of a regional retail shopping destination for the Compton community. We completed negotiations for acquisition of the site with the Redevelopment Agency under a long term agreement that allowed for time to relocate existing tenants, achieve entitlements and negotiate new primary anchors for the future center. Our firm worked with local agencies to prepare a full environmental impact report and collateral documents, and a $47 million dollar construction loan was secured through our strong lending relationships. Our expert team successfully leased 70% of the site prior to the start of construction. The development project was completed on time and on budget.
The success of Gateway Towne Center Phase I brought on the development of Phase II. The entire 502,000 square foot center is currently 100% leased with a well balanced mix of national credit tenants. The project remained 100% leased even through the 2008-2011 recession. Retail tenants such as Bank of America, TGI Fridays, Target, Marshalls, Best Buy, Staples, Ross, Chipotle, Starbucks and many more give a very significant property tax and sales boost to the City’s economy exceeding $2.6 million per year. Over 900 local Compton residents are employed at the center. Gateway Towne Center has revived the Compton community and serves the everyday needs of 3 million people within the 10-mile trade area providing them a high quality environment to shop, dine, and workout. It has become the proven premier center and benefits from limited competition in the under-served urban market.