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KINGSPORT, TN-Somera Capital Management has staked a claim in the Tennessee retail arena with the acquisition of Fort Henry Mall. The retail asset has 530,446 leasable sf.
Built in 1976, the mall underwent renovations in 1989 and 2005, according to a Somera release. It is the only regional mall in Kingsport, and is 25 miles from the nearest competitor, company officials add. Fort Henry Mall is anchored by Belk, Belk Home & Kids, JC Penney and Sears. The tenant roster also includes American Eagle, Victoria's Secret and an 11-theater Marquee Cinema. It is currently 95% leased. The property was the first to be sourced by the company's new Washington, DC office. Somera Capital Management declined to reveal the purchase price, cap rate or the seller. The new owner has given General Growth Properties the leasing and management contract.
With the acquisition, Somera now is now penciling renovation and expansion plans for Fort Henry Mall, according to a company spokeswoman. "Somera Capital Management plans to renovate the interior and exterior spaces, improve customer services, add family restrooms and a children's play area, and strengthen the tenant mix with more restaurant, entertainment and national retail merchants," she tells GlobeSt.com. "The property has five outparcels that are available for additional retail and restaurant uses."
Somera Capital's Steve Plenge, executive vice president, and Charlie Christensen, vice president, will lead the renovation and expansion efforts. "Kingsport is an incredibly strong and dynamic market that is currently underserved by retail." Plenge says. "There's an opportunity to add significant value to Fort Henry mall and to strengthen the mall's performance and retail offerings."
According to the Kingsport Economic Development Partnership, Kingsport's 2005 effective buying income was $29,977. The city's population registered 44,130 in 2005, with 490,238 residents in the Tri-Cities MSA. The Tri-Cities region reaches from Northeast Tennessee to the corner of Southwest Virginia.
Fort Henry Mall was Somera Capital's third retail acquisition in the past 12 months. In June, the Los Angeles-based company closed on its purchase of the 1.8-million-sf Northwest Plaza in St. Ann, MO for $45 million. And in February, Somera Capital closed on its purchase of the 665,000-sf Laurel Mall in Laurel, MD for $31 million.
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