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GREAT NECK, NY-In order to complete what Feldman Mall Properties chairman and chief executive officer Larry Feldman calls a $45-million "revamping of the mall from end to end," the locally based REIT is looking for a joint venture partner for its Colonie Center in Albany. Expecting to have one in place within the next 30 to 60 days, Feldman said he sees a "voracious appetite" from potential partners, adding that the REIT feels it would be too large of a capital commitment to take on by itself. Feldman said it would be a 75/25 partnership with Feldman holding the 25% stake.

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.