SANDY, Utah – November 3, 2014 — A partnership between Pacific Retail Capital Partners, Silverpeak Real Estate Partners and the Merchant Banking Division of Goldman Sachs announced today that it has acquired the 1.3 million-square-foot South Towne Center Mall and Marketplace in Sandy, Utah. Located approximately 16 miles south of Salt Lake City, Sandy is an affluent and growing community with numerous economic growth drivers that has made it a desirable city for many young families.
South Towne Center is a two-level, 966,000-square-foot enclosed regional mall featuring approximately 150 shops and restaurants with well-performing anchors, including Macy’s, Dillards, JCPenney and Utah’s largest Forever 21. The adjacent 312,000-square-foot Marketplace is anchored by Super Target.
“The property benefits from its prime location in the heart of Sandy’s Civic Center, with excellent access and visibility off I-15, as well as its proximity to the area’s top ski resorts. This unique location allows South Town Center to appeal to both a strong base of local customers as well as visitors,” said Steve Plenge, managing principal, Pacific Retail Capital Partners. “While the mall continues to perform well, we believe there are opportunities to improve the experience in a way that will make it dramatically more attractive to both shoppers and tenants.”
The partnership intends to execute a large scale renovation that will feature a significant mall “makeover” to give the center a look and feel that reflects its location not only within the City of Sandy but also its proximity to the popular Little Cottonwood Canyon resorts of Snowbird and Alta.
“The center is a logical gathering spot for the community but in recent years has not seen the capital expenditures necessary to provide a top notch experience that its customers deserve,” noted Gary Karl, Executive Vice President, Pacific Retail Capital Partners. “Our plan is to renovate all elements of South Town Center in a way that reflects the region’s design aesthetic and outdoor lifestyle. We will create new entrances and indoor areas that use rich materials such as stone and wood, cozy and comfortable seating areas as well as elements that bring the outdoors inside.
“The mall already draws eight million visitors per year and can be made an even more attractive destination with a new design that creates a more contemporary feel and offers more shopping, entertainment and dining options to its customers,” added Constantine Tujios of Silverpeak Real Estate Partners.
The Los Angeles office of Gensler Associates has been engaged to create the new design. Current plans include upgrades to the mall’s infrastructure such as lighting, flooring, restrooms including a family restroom facility, a new children’s play area and a revamped food court with expanded food offerings. In addition, to reimaging the entire South Town Center experience, Gensler’s design will take into account the city’s vision for the Civic Center Area evolution as detailed in its 30-year development plan.
Pacific Retail will oversee all operations at South Town Center as well as its renovation. The company has significant experience in the management, leasing and repositioning of large regional malls. Its investment and management portfolio includes the West Oaks Mall in Houston; Yorktown Center in suburban Chicago; Colonie Center outside Albany, New York; Broadway Mall on Long Island, New York; and Queen Ka’Ahumanu Center on Maui, Hawaii.
Silverpeak Real Estate Partners
Silverpeak Real Estate Partners is a full-service, diversified real estate investment business with over $13 billion of gross real estate assets under management. Silverpeak acquires and manages real estate on behalf of commingled funds, separate accounts and for its own account. Since 2010, Silverpeak, together with its operating and capital partners, has acquired over $4 billion of real estate assets in the US, both on a principal basis and on behalf of various institutional investors. The Firm has invested in office, retail, multifamily, hotel and other asset classes. In addition, the Firm recently formed Silverpeak Real Estate Finance, in partnership with Elliott Management Corporation, to make commercial loans throughout the US in the retail, hotel, industrial and multifamily space.