The American mall has been hit in recent years by a pandemic, online shopping and multifamily investors prioritizing apartments over storefronts. Against that backdrop, Stockdale Capital Partners joins a growing cadre of developers betting that some of the most valuable retail hubs are being overlooked.
The Los Angeles-based firm is targeting retail properties that larger owners have sidelined or sold off, stepping in with fresh capital and a hands-on approach to reposition assets that still sit in markets near affluent and active residential pockets.
That strategy is playing out at The Oaks mall in Thousand Oaks in greater Los Angeles, a property Stockdale bought from publicly traded mall real estate investment trust Macerich in late 2024. It's also going on in Denver, where the firm is updating a 1.1 million-square-foot retail center it acquired from Australian pension fund-backed QIC.
“We survived the so-called retail apocalypse and COVID, and retail today is stronger than many people think,” Bastian Peters, co-head of retail at Stockdale, told CoStar News during a weekday morning tour of The Oaks.
Across the retail real estate sector, some institutional owners have pulled back from enclosed malls after years of disruption from e-commerce and the pandemic, choosing instead to focus on top-tier properties or shift capital into other property types.
That retrenchment has created an opening for firms like Stockdale, which is raising opportunistic capital to acquire well-located malls and put money back into the fundamentals, starting with storefronts.
The strategy still faces headwinds as discretionary spending slows and operating costs climb, according to CoStar research. Meanwhile, other investors are turning lower-performing malls in weaker locations into housing or mixed-use projects that prioritize other property types over retail.
Rethinking retail
In San Francisco, the city's largest mall was being marketed for sale as a “blank canvas” for some sort of mixed-use redevelopment project with homes, hotels, education and entertainment, de-emphasizing retail. The San Francisco Centre closed this year and sold last month to two developers, Presidio Bay Ventures and the Prado Group.
But for well-located centers with strong demographics including high-growth and diverse populations, other investors say retail is still worth the investment.
Simon Property Group is selectively investing in top-tier suburban malls, including properties in Orange County like Brea Mall and The Shops at Mission Viejo. Meanwhile, the family that owns Dallas' NorthPark Center mall bought out JP Morgan's equity stake in the property for $650 million. And a group led by Pacific Retail Capital Partners purchased the 2 million-square-foot Lakewood Mall in southeast Los Angeles County for $332.1 million.
At the same time, major bank lenders stepped up their financing of U.S. malls last fall, targeting elite shopping centers in Texas and Florida. That came even as the broader retail sector gets hit with tenant bankruptcies, store closings and a pullback in spending among some lower-end consumers.
“Indoor malls have been punished over the last 15 years, but we believe there is still a place for them, especially in suburban markets like Thousand Oaks,” Peters said. “The old model doesn’t work anymore. Today it’s about experiential uses, variety and integrating into daily life.”
The value of experience
The 1.3 million-square-foot Oaks mall is one of hundreds being reimagined across the nation as investors test different strategies aimed at attracting customers in the wake of the pandemic and e-commerce.
The Oaks, for one, still has the anchors that define successful traditional retail — Nordstrom, Apple and other national brands — but the details tell a different story, from dated wrought-iron chandeliers to an outdoor component that lacks shade and modern landscaping.
"Our playbook is reposition, re-merchandise and reimagine," with a focus on targeted upgrades and operational changes rather than wholesale redevelopment, Peters said.
Stockdale has already spent roughly $2 million on early upgrades, with plans for expanded outdoor amenities, refreshed interiors, improved signage and a broader mix of uses that go beyond traditional apparel.
The goal is to modernize the property while preserving the fundamentals that already work.
That same philosophy is further along in Denver.
At Avenues at Northfield, Stockdale is taking a more capital-intensive approach, committing roughly $150 million to reshape the property it acquired from Australian investor QIC in 2022 into a pedestrian-oriented district anchored by a central green space, community programming and a reworked tenant mix.
“We’ve spent the last few years listening to the desires of our guests, the community and our retailers,” Peters said. “The goal is to create a place where life happens.”
Leasing activity reflects that shift. More than 350,000 square feet of deals have been signed in the past year at Avenues of Northfield, with tenants ranging from home goods retailer Wayfair to high-end gym Life Time Fitness. The project is expected to be completed ahead of the 2026 holiday season, offering a clearer test case for Stockdale’s broader strategy.
Suburban mall bet
Stockdale's effort is being led by Peters, a former Westfield executive, and Jeff Bhathal, who spent years overseeing major portfolios at firms such as CIM Group and Lincoln Property Co. Bhathal has also lived near The Oaks for the past decade.
“It’s an affluent area with strong household incomes, excellent public schools and limited retail supply,” Bhathal said. “In a market like this, there aren’t many options, which makes a well-located mall attractive.”
The firm’s view is that malls are not disappearing — they are evolving. Success now depends less on rows of apparel stores and more on whether a property gives consumers a reason to spend time there.
Efforts at The Oaks are starting to pay off, Bhathal said.
“The difference is noticeable,” he said, pointing to increased tenant interest and stronger customer feedback.
The next phase goes beyond cosmetic fixes. Plans include upgraded restrooms, improved signs, enhanced children’s play areas and outdoor improvements such as added shade, seating and landscaping tailored to Southern California’s heat.
Equally important is a shift in the tenant mix. Traditional apparel is giving way to a broader lineup that includes food and beverages, fitness, services and other experiential uses. Programming is also becoming central to the model, from kids clubs to large-scale events designed to draw consistent foot traffic.
Building the bench
Stockdale operates across multiple asset classes — including retail, office, hospitality and medical office. The company has about 2.5 million square feet of retail in its portfolio, of which The Oaks is the largest single property.
The firm is deploying capital through opportunistic funds backed by pension funds, endowments and family offices, giving it the flexibility to move quickly when properties come to market. Last summer it announced the close of its SCP Real Estate Opportunities Fund II.
Its platform — spanning leasing, management and operations — allows it to control the repositioning process rather than rely on third parties, according to Bhathal.
“We’re a vertically integrated private equity real estate investment manager,” Bhathal said. “That allows us to control execution from acquisition through redevelopment.”
The firm has been building out its internal team with retail experience to support its goal of finding more properties like The Oaks from large investors trimming their portfolios.
Over the past year, Stockdale has added more than 30 employees across investment, leasing, asset management and operations. New hires bring backgrounds with firms including Unibail Rodamco Westfield, Tishman Speyer and Caruso, with particular emphasis on retail leasing expertise.
That team is now focused on the mall's next chapter.
“At the end of the day, you have to give people a reason to leave their homes,” Peters said.