Developer Backs Out of Deal to Buy Baldwin Hills Crenshaw Plaza
Developer CIM Group backed out of plans to buy the iconic Baldwin Hills Crenshaw Plaza shopping center following pressure from Black community leaders who argued the purchase represented gentrification and was a threat to South Los Angeles and its economic interests.
“CIM has concluded that the community, the mall and CIM are best served by us stepping aside,” CIM Group posted on social media late Sunday. “We wish the community great success in achieving all of its goals for the mall.”
The Los Angeles-based company had been in escrow to buy the site, which has been for sale since 2018. CIM owns billions of dollars of real estate throughout the United States, including the Dolby Theatre in Hollywood, and has received tens of millions of dollars in government loans and tax subsidies for its massive real estate deals.
But a group of housing justice advocates, community groups and civic leaders opposed the purchase, arguing the company would chase out minority-owned businesses. The coalition also cited allegations that CIM had strong ties to President Donald Trump and his son-in-law, Jared Kushner.
CIM officials denied having any affiliation to the president.
“CIM helps communities achieve their goals and supports minority-owned businesses,” the company stated on Instagram. “CIM has no business with, nor is it ‘backed’ by Trump or Kushner. CIM never intended to demolish the historical mall.”
CIM’s plan would have scrapped the previously announced redevelopment that was planned by the current owner, Capri Capital Advisors LLC, one of the nation’s largest minority-owned real estate companies. Capri’s plan, endorsed by local elected officials and community leaders, called for building 1,000 mixed-income housing units and a 400-room hotel on underdeveloped portions of the property.
Crenshaw Subway Coalition Executive Director Damien Goodmon called CIM’s decision not to purchase the property a win in what’s been an “epic fight.” He said, “This is a tremendous Black victory and a testament to the power of our community.”
Source: https://abc7.com/baldwin-hills-crenshaw-plaza-mall-shopping-center-gentrification/6250108/