CHICAGO-Locally-based Urban Retail Properties LLC’s third-party management division has taken on two mall portfolios totaling about 3.5 million square feet. The company will provide management and leasing services for the five regional centers in Georgia, Tennessee, Pennsylvania and Ohio.
The first portfolio includes three properties formerly owned by New York City-based Lightstone Group. The malls are Mount Berry Square Mall in Rome, GA; Bradley Square Mall in Cleveland, TN and Shenango Valley Mall in Hermitage, PA. Anchors at the malls include JCPenney, Sears, Belk, Macy’s and Kmart.
In 2008, Lightstone returned the properties, as well as Martinsburg Mall in Martinsburg, WV, to lenders, which included Bank of America and JP Morgan Chase. Jones Lang LaSalle and the JE Robert Co. had been working as receivers/managers of the properties. Mountain State University reportedly bought the Martinsburg property in April 2010, but a deal by another firm to pay $21 million for the other three malls fell apart.
Paul Motta, president of leasing for Urban Retail, said his firm has already secured nine anchor renewals at the three centers. The malls have struggled, however. For example, no buyers stepped up in July to pay almost $7 million in a foreclosure sale for the 478,000-square-foot Mount Berry property.
Ross Glickman, CEO of Urban Retail, tells GlobeSt.com that more and more lenders are looking for third-party managers to handle foreclosed properties. “It’s part of business reality that our work is growing. We probably have another six to announce soon that we are receiving,” he says.
Also, Midwest Mall Properties awarded Urban Retail the management and leasing of the Citadel center in Colorado Springs, CO and the Northwest Arkansas Mall in Fayetteville, AR. Both centers include anchors Dillard’s and JCPenney. Macerich was the former manager.
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