Paseo Nuevo is under the new management of Rick Caruso, the Los Angeles mall developer also in charge of building The Miramar Beach Resort & Bungalows in Montecito.
Caruso’s privately held real estate development company, Caruso Affiliated, took over management of the downtown Santa Barbara mall’s day-to-day operations from Macerich real estate investment company effective Monday, according to Caruso spokeswoman Liz Jaeger.
The deal was made at the request of Paseo Nuevo’s owner, institutional investors advised by J.P. Morgan Asset Management. The bank remains in a 50-year lease with the City of Santa Barbara.
“Santa Barbara is a wonderful community, with a rich history and unique style,” Caruso, founder and CEO of Caruso Affiliated, said in a statement. “We’ve had a great deal of interest in the Santa Barbara retail market, and we are pleased to be involved with Paseo Nuevo. We believe Paseo Nuevo is a beautiful property that has served the community of Santa Barbara well.
“We look forward to working closely with existing tenants, while we seek potential opportunities, to ultimately deliver a high-quality experience for guests.”
City planner Bettie Weiss told Noozhawk that management of Paseo Nuevo — a major redevelopment project for the city — has changed several times over the years without any hiccups.
“We would expect interaction similar to what we had before,” she said.
Paseo Nuevo, located downtown at 651 Paseo Nuevo off State Street, has 53 stores and other spaces in the outdoor shopping center that opened in 1990.
The property will be the 13th existing development managed by Caruso Affiliated.
Caruso’s portfolio includes a collection of properties that attract millions of people annually, including one of its premiere developments, The Grove in Los Angeles, which attracts more guests per year than Disneyland.
Speculation that the company could also begin managing La Cumbre Plaza — Macerich’s other Santa Barbara property — has been unfounded thus far.
Locals know the Caruso name for its attachment to the yet-to-be-built Miramar Beach Resort & Bungalows development in Montecito, which was stalled while obtaining proper approvals and financing.
The exclusive oceanfront resort will be built on 16 acres and feature 186 rooms and suites, a majority of which will be housed in lanai cottage and bungalow buildings.