Investor Group to Purchase Anaheim GardenWalk

Arcturus Group and Avenue Capital Management have acquired Anaheim GardenWalk, a retail lifestyle center located near the main entrance to Disneyland Resort and the Anaheim Convention Center. The terms of the GardenWalk acquisition, in which Arcturus and Avenue have been joined by Elliott Management, were not disclosed.

PRESS RELEASE

Arcturus Group and Avenue Capital Management today announced that an investor group they have formed has completed the purchase of Anaheim GardenWalk (“GardenWalk”), a retail lifestyle center located just steps from the main entrance to Disneyland Resort and the Anaheim Convention Center. The terms of the GardenWalk acquisition, in which Arcturus and Avenue have been joined by Elliott Management, were not disclosed.

Arcturus and Avenue sourced and structured the Anaheim GardenWalk investment opportunity and will execute a new strategic business plan. They intend to thoroughly revamp operations and marketing, and complete an aggressive re-positioning plan and lease-up. Arcturus will oversee day-to-day property management and business plan initiatives. Bruce Macleod, Head of the Retail Group at Arcturus, will direct retail strategy and, along with James Selonick of Arcturus, manage operations.

GardenWalk is a 450,000-square-foot open-air retail center featuring shops and entertainment venues such as 300, a themed bowling alley, and UltraLuxe Cinemas, along with numerous major national restaurants, including The Cheesecake Factory, P.F. Chang’s, California Pizza Kitchen, McCormick & Schmick’s, Roy’s Hawaiian Fusion and Bubba Gump Shrimp Co.

The lavishly constructed trophy property was developed and opened prior to the economic downturn in 2008. Because of the challenging economic times, the property subsequently turned financially and operationally distressed and soon after went through foreclosure proceedings in 2010. As a result, GardenWalk never achieved momentum and has remained approximately 50% occupied over the past two years.

“The recent rezoning allowing more entertainment tenancy at the property creates enormous potential for GardenWalk as an entertainment-oriented retail destination given its design and location. Our group intends to unlock the potential of this magnificent, but previously financially challenged, asset by capitalizing on its proximity to the 20 million annual visitors to Disneyland, which recently invested over $1 billion on a major expansion, 15,000 hotel rooms, and the largest convention center on the West Coast,” said Jonathan Mayblum, co-founder of Arcturus.

“The new ownership group possesses the operational expertise and has plenty of capital budgeted for tenant improvements and leasing commissions, as well as several strategic capital improvement projects. This will be a real win-win for the investors, the tenants, the visitors to the area, and the City of Anaheim,” added Arcturus co-founder Matthew Stroyman.

About Arcturus Group Arcturus Group, co-founded by Jonathan Mayblum and Matthew Stroyman, is a real estate advisory and asset management firm that provides stakeholders (e.g. investment firms, banks, private owners, creditor committees, special servicers, etc.) with strategic advice, and expertise in operations, corporate management and debt restructuring. Arcturus seeks to resolve complicated issues and maximize asset performance and value on behalf of its clients. A major distinguishing factor of the firm is the experience of the senior executives who lead its Hotel & Resort, Office, Retail, Multifamily and Single-family/Land groups; all have 25+ years’ experience and were formerly President, CEO or COO of operating companies in their respective asset class. Arcturus brings a principal’s perspective to all of its assignments and works with clients by (i) analyzing investments, (ii) developing business strategies, (iii) managing operational and personnel issues, and (iv) executing property, portfolio and loan repositioning strategies to maximize investment returns.

About Avenue Capital Group Avenue Capital Group is a global investment firm focused on undervalued opportunities in the private and public debt, equity and real estate markets in the U.S., Europe and Asia. Avenue manages assets estimated to be approximately $12.5 billion as of July 31, 2012. The Avenue Real Estate Strategy applies a distressed-focused approach to target situations that it believes can maximize risk-adjusted returns.

About Elliott Elliott is a multi-strategy hedge fund founded in 1977 with approx $20 billion under management today. Through offices in New York, London, Hong Kong, and Tokyo, the firm has major investment interests around the world, and pursues a diversified investment and trading program, including distressed securities, a broad range of arbitrage activities, and direct investments including real estate and operating companies.

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