We acquired La Habra Marketplace in LaHabra (Orange County), California in June 1994. The 215,000 square foot community shopping center was anchored by Service Merchandise, Drug Emporium and Ross Stores. A depressed economy and poor management left the property 30% vacant. When the property's operating income could no longer service the existing debt, the lender foreclosed and we acquired the property from the lender at 50% of the face amount of the original note. We subsequently purchased an adjacent vacant Bullock's department store to combine the sites and perform a larger scale redevelopment.
We focused on upgrading tenant quality and increasing occupancy on the original portion of the center by improving facades and leasing several vacant pad buildings. Subsequently we demolished the existing department store on the adjacent parcel and added a 16-screen Regal Cinemas, Office Max, Oshman's Sporting Goods and multiple retail pad buildings. The GLA of the fully redeveloped shopping center increased to 375,000 square feet and the operating income quadrupled. We sold the shopping center in a single transaction in May 2004.