Feldman, speaking during the company's second-quarter results conference call, estimated a quarter of the funds will go toward capital improvements at the 1.2-million-sf mall, which it purchased earlier this year in an all-cash deal totaling $82.2 million. In the first phase of redevelopment, the REIT already has leases out for 100,000 sf. Regal Entertainment will house a 14-screen cinema, while an unnamed retailer will take 33,000 sf and an upscale restaurant chain will account for the rest.

The two-level complex has anchor tenants of Macy's, Sears, Boscov's and Christmas Tree Shops. The facility also has junior anchors FYE and Steve & Barry's. Interior improvements planned include adding a large fireplace to maintain an "Adirondack feel," Feldman said. In June, the REIT completed a $50.7-million six-month bridge financing collateralized by Colonie Center. The loan bears interest at a rate of LIBOR plus 140 basis points and matures in December 2005. The company intends to refinance the Colonie Center Mall with a three to five year first mortgage loan that will include a construction portion to the loan. Feldman intends to replace the bridge loan financing prior to the maturity date with a first mortgage maturing in three to five years.

Feldman Mall reported Funds From Operations totaling $2.9 million for the second quarter ended June 30. The company's net income for the three months ended June 30, 2005 was $205,000. For the six months ended June 30, FFO totaled $5.4 million, while net income was $575,000. The REIT's portfolio, including non-owned anchor tenants, now consists of six regional malls aggregating approximately 6.2 million sf.