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Local company buys the Gateway Promenade center

Built in 2007, the retail center remained mostly empty in the past five years

Posted: January 10, 2013 3:46 p.m.
Updated: January 10, 2013 3:46 p.m.

Intertex Properties closed escrow on the Gateway Promenade on The Old Road, and is already filling the retail center with new clients.

 

Intertex Properties of Valencia announced Monday that it has purchased the Gateway Promenade retail center located at the intersection of Interstate 5 and Highway 126, said a spokesman for the company.

The seven buildings and two pads were constructed in Santa Clarita aside The Old Road in 2007, but remained mostly empty as the economy crashed.

The center has 98,865 square feet of retail space, said Darcey Oldhafer, development manager for Intertex.

Terms of the deal were not disclosed.

Intertex has been building and developing projects for three decades. But, once the market turned Intertex began buying finished and distressed properties, Oldhafer said.

"With the economy the way it was, it didn’t make sense to build," she said. "We’ve bought several properties out of foreclosure. In other cases we bought notes and then foreclosed."

Purchased from the former owner who was close to losing the project, Intertex worked out a deal with the owner and took possession of the center at the end of November 2012, Oldhafer said.

While mostly vacant, the center was heavily used by multiple film crews for filming purposes, she said.

Re-purposed

Originally designed as a furniture outlet, filling the center coincided with the ill timing of the souring economy and permit delays.

Meanwhile, as retailers were hurt by the recession they put off expansion plans; opening at fewer locations or closing altogether. The retailer Home Consignment Center, however, remains at the center.

Prior to the close of escrow, however, Intertext secured leases and approvals from tenants to occupy 55,198 square feet of space, Oldhafer said.

Capelli Salon recently opened. And two new tenants are Higher Vision Church and video game technology company, Way Forward Technologies, she said.

"Way Forward needed a location with more space and parking," Oldhafer said.

Intertex is also currently in discussion with several other prospective tenants.

Because of the center’s location, it is really more ideal as a destination center as opposed to retail clients who need to rely on cross traffic, she said.

So much of the center has now been leased, or will be; only 18,255 square feet of what is already built remains available.

"There are also two pads available that haven’t been built yet," Oldhafer said. "There’s another 9,100 square feet of building space that’s ideal for fast food restaurants."

And as the center fills up, Intertex said it expects it to generate more traffic and bring extra activity to the area.

 

 

 

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