Del Monte Shopping Center in Monterey sells for $123.5 million.

Del Monte Shopping Center, the 674,000-square-foot, 47-acre center in Monterey, has been sold for $123.5 million.

San Diego-based American Assets Trust, which purchased the shopping center in 2004, announced the sale on Feb. 25 to North Bethesda, Maryland-based Federal Realty Investment Trust.

"The sale of Del Monte Center is a strategic decision that allows us to focus on markets where we can achieve greater economies of scale and operational efficiencies while aligning with our long-term growth objectives,” said Adam Wyll, American Assets Trust’s president and chief executive officer, in a press release. “We are proud of the value we have created at Del Monte Center and confident that the new ownership will continue to build upon its success.”

The shopping center, built in 1967 and remodeled and expanded in the decades since, is home to Macy’s, Whole Foods, a Cinemark Century theater and more. It is 83-percent leased, according to Federal Realty. The largest available location, 22,489 square feet, has been vacant since Forever 21 closed in late 2019.

“We look forward to capitalizing on our deep relationships with aspirational retailers looking to expand and enter new markets with a partner who has a history of delivering great places and strong sales,” Federal Realty’s Executive Vice President/Chief Investment Officer Jan Sweetnam said in a press release.

Federal Realty, which has properties throughout the country, owns Santana Row in San Jose and other high-end developments in Santa Clara County, and has a history of serving “affluent customers,” according to a company statement.

Monica Lal, president/CEO of the Monterey Peninsula Chamber of Commerce, says one of the chamber’s board members, Anne Sierra, will continue to serve as general manager of the shopping center under the new ownership.

“We are glad to know she will continue to bring her deep and extensive retail knowledge to this longtime, beloved local asset,” she says.

Lal adds that the chamber was aware the property was in negotiations.

“We are hopeful the new owners will be active and attentive local partners, knowing other communities throughout the state are losing access to pharmacies, brick-and-mortar stores, and places which encourage community gathering,” she says.

Malls remain a big business, even growing in the era of online shopping, according to a recent study.

According to Coresight Research, traffic at “non-top-tier malls,” or those described as having a less-affluent customer demographic, increased by 10 percent in 2022 compared to 2019 levels, while revenue grew by nearly 9 percent to $6.5 billion. “Top-tier” malls also enjoyed similar growth, the study found.

Physical store openings in malls exceeded closures in 2022 for the first time since 2016, according to the study.

Northridge Mall in Salinas, which celebrated its 50th anniversary in 2024, is undergoing a major investment in the former Sears building, where Burlington, Dave & Buster’s, Gohan Buffet, O’Reilly Auto Parts and Smash n’ Axe are planned to open.

While Macy’s announced it was closing 150 stores nationwide over the next two years, the Del Monte and Salinas locations are not among them.