Los Angeles Retail Properties Getting New Life Through Mixed-Use Conversions

Across Los Angeles and Orange County, developers are accelerating the transformation of underperforming retail properties into mixed-use communities — a trend driven by shifting consumer habits, California's housing crisis, and evolving municipal planning priorities.

Westminster Mall Becomes 83-Acre Mixed-Use Community

The most ambitious project currently underway is the redevelopment of the shuttered Westminster Mall in Orange County. Shopoff Realty Investments, led by CEO William Shopoff, announced plans in February 2026 for "Bolsa Pacific" — an 83-acre mixed-use community on the former mall site that will include housing, a hotel, and ground-floor retail.

The Westminster Mall, which closed after decades of declining foot traffic, is one of several large-format retail properties in Southern California being reimagined as walkable, mixed-use neighborhoods. The project reflects a broader reckoning with the oversupply of enclosed mall space in suburban markets.

Warner Center's Transformation

In the San Fernando Valley, the Warner Center district in Woodland Hills is undergoing a significant transformation. Wellpointe, led by CEO George Kutnerian, acquired the property at 6400 Canoga Avenue from Sandstone Properties and plans to develop 100% affordable housing on the site.

The project is part of Warner Center's broader evolution from a car-dependent office and retail hub into a denser, transit-connected neighborhood. The area's specific plan, adopted by the City of Los Angeles, encourages mixed-use development and higher density near future transit stations.

Retail Investment Continues Despite Repositioning Trend

Not all retail activity is about conversion. Asana Partners, led by Terry Brown, acquired the Seacliff Village Shopping Center in Huntington Beach from Barings (led by CEO Mike Freno) for $151 million. The Albertsons-anchored center represents the type of grocery-anchored, necessity-based retail that continues to attract investor interest even as discretionary retail properties face headwinds.

Caruso, the developer known for luxury outdoor shopping destinations, is planning to reopen Palisades Village in 2026 following the devastating Pacific Palisades wildfire. The project's rebuild underscores the resilience of well-located, experiential retail in premium markets.

Meanwhile, developer Dwight Manley secured $112 million in financing in January 2026 for a planned Costco-anchored redevelopment — evidence that high-volume, value-oriented retail concepts remain bankable even as traditional malls lose relevance.

Housing Pressure Drives Policy

California's persistent housing shortage is a primary driver of retail-to-residential conversion. State legislation, including SB 6 (the Middle Class Housing Act) and AB 2011 (the Affordable Housing and High Road Jobs Act), has streamlined the approval process for housing on commercially zoned land. These laws have removed significant zoning barriers that previously prevented developers from converting retail sites.

Los Angeles County alone needs an estimated 500,000 additional housing units to meet current demand, according to the Southern California Association of Governments. Repurposing underutilized retail land is increasingly seen as one of the fastest paths to adding supply.

What's Next

The trend is likely to accelerate. With enclosed mall vacancy rates elevated nationally, lenders and equity investors are becoming more comfortable financing conversion projects. Developers who can navigate California's entitlement process stand to benefit from strong tenant demand and favorable policy tailwinds.

For CRE investors, the retail-to-mixed-use conversion theme represents both a risk (for those holding legacy retail assets) and an opportunity (for developers positioned to execute complex repositioning projects).