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BARRINGTON, IL-Locally based retail acquisition and development company GK Development Inc. has purchased two regional malls from the Macerich Co. for $90 million. The acquisition, which totals 1.2 million sf, marks the company's debut in Greeley, CO and Great Falls, MT.
Garo Kholamian, president of GK Development, says the transactions fit with the company's strategy to acquire property where it can be a leading player. "Each mall is the dominant regional mall in its trade area providing a shopping venue of choice for nearly 400,000 consumers, and we expect to retain that position," Kholamian says.
Included in the transaction was Greeley Mall, a 577,200-sf mall, with four anchor stores, a 12-screen theater and 58 specialty stores. Major tenants are Dillard's, Dillard's Market Center, Cinemark Theater, J.C. Penney and Sears. The property is located on US Hwy 34 at 23rd Avenue, one mile west of US Hwy 85.
The company also acquired Holiday Village, a 579,200-sf regional shopping center with three department stores and 37 specialty stores in a split-level facility. The property is located at 1200 10th Ave. South. Major tenants are Herberger's, J.C. Penney and Sears. On the mall's north side, long-time mall tenant Scheels Sports is constructing a new 50,000-sf store that is expected to open in the first quarter of 2007. An adjacent open-air component houses an Osco Drugs, the current Scheels store and a new Ross Dress for Less, currently under construction. The 30,000-sf store is expected to open in the first quarter of 2007.
Garrette L. Matlock, vice president/investments and senior director/national retail group in Marcus & Millichap's Denver office, represented Macerich in the Greeley Mall transaction. Chris Turner of Holliday Fenoglio Fowler, LP, represented the seller in the Holiday Village Mall deal.
Chicago lenders providing financing for the transaction included KeyBank Real Estate Capital, Countrywide Commercial Real Estate Finance Inc. and LaSalle Bank. Melissa Pielet and Ellie Schumacher of Chicago-based HSA Commercial Real Estate arranged the financing package for GK Development.
Both properties are part of the InvestLinc/GK Properties Fund I, an accredited investor private real estate fund investing in value-added properties. Hoffman Estates-based InvestLinc Financial Services is a consulting, private equity fund management and investment banking firm, specializing in emerging growth companies.
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