The buyer is Almeda Mall LP, a partnership of Buchanan Street Partners, a real estate investment bank from Newport Beach, CA, and WCF Development Co., a Houston development company with its own management and leasing affiliate, Fox Properties. In a separate transaction, the partners also bought a vacant 200,000-sf JCPenney store at the 90%-leased mall, situated at the intersection of Interstate 45 and Almeda Genoa, for an undisclosed price. A 300,000-sf Macy's store that anchors the 43.5-acre mall was not included in either sale.
"We saw a great opportunity to improve the property," says Buchanan Street senior vice president Kristin Olson. "The mall appears fairly nice already, but we want to freshen it up a bit and re-tenant it. We want to take advantage of the frontage along the Gulf Freeway. Our intent is to create space for junior anchors along the freeway."
In addition to Macy's, the 41-year-old mall at 555 Almeda Rd. is anchored by Ross Dress for Less and Steve & Barry's University Sportswear. Inline tenants include Anna's Linens, Foot Locker, Bath & Body Works and RadioShack. According to Olson, the partners plan to reconfigure part of the existing mall to create additional tenant space. They also plan to demolish the JCPenney structure and replace it with new buildings.
"We're identifying potential tenants and reviewing site plan alternatives, but we haven't made a final determination about what we will replace it with," she tells GlobeSt.com. "The mall is well situated between two higher-end centers, the Gulfgate Mall and Baybrook Mall, but Almeda Mall is geared more toward the demographic in Almeda. We're looking for ideas that fit with that."
Buchanan Street also is partnered with WCF and Houston-based Transwestern Development Co. in the development of the 563,000-sf Shadow Creek Ranch Town Center in nearby Pearland. In January, the company provided $47 million in equity for the $170-million Pavilions project in Downtown Houston. That project will have 360,000 sf of retail and 200,000 sf of offices.
"In general, we like retail," Olson says. "With regard to Almeda, we like repositioning class B malls and increasing their value. It's a product type we're interested in continuing to pursue. We're looking at similar opportunities nationwide, but we have nothing lined up right now."
Almeda is the third mall Glimcher has sold this year as part of a disposition program entailing five non-strategic mall assets. The Columbus, OH-based REIT is using the proceeds to pay down short-term borrowings under its line of credit. Eastdil Secured of New York City marketed the asset.
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