SALT LAKE CITY-PCCP LLC has provided a $69.2 million senior loan to recapitalize and provide renovation financing for Valley Fair Mall, an 877,153-square-foot regional mall here that is 93% occupied. The ownership is a joint venture between Coventry Real Estate Advisors and Satterfield Helm.
The retail center has experienced significant repositioning already, according to a prepared statement, with more than 100,000 square feet of new junior anchor, restaurant and shop space built in the past three years. The majority of the new space was built outside of the existing mall in a town center that increases the overall traffic of the mall.
Costco, and other credit tenants including Ross and Petco, have been brought into the center over the past three years, says the statement. The ownership intends to continue the momentum and repositioning progress over the next three years.
Built in 1970, Valley Fair Mall consists of 150 tenants and is still anchored by original tenants JC Penney and Macy’s. A significant portion of the new loan will finance the construction of a new 15-screen Megaplex movie theater totaling 110,000 square feet that will replace a former Mervyns space, and is slated to open in the fourth quarter of 2012. Costco is the fourth anchor, with a free-standing 150,000 square foot building adjacent to the mall on a long-term ground lease.
“The PCCP loan will refinance the current loan as well as provide funding for significant new construction including the Megaplex, approximately 50,000 square feet of new junior anchor space and significant renovation of the mall interior,” explains Jim Galovan, vice president with PCCP. “Overall, this opportunity fit well with PCCP’s debt strategy as the retail center is a well-performing asset in a strong location with both durable in-place cash flow and immediate value-add opportunities.”
Valley Fair Mall is well located on the corner of 3500 South and Highway 215. The mall caters to the middle and working class residents of the West Valley area of Salt Lake City, which has a population of 350,000.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
