Deal highlights PRCP's expertise in unencumbering retail assets for redevelopment
LOS ANGELES – August 1, 2024 – Pacific Retail Capital Partners ("PRCP"), one of the nation's leading retail real estate development, investment, management and advisory firms focused exclusively on evolving retail-led real estate, today announced the strategic sale of The Shops at South Town in Sandy, Utah to Smith Entertainment Group (SEG), a sports, entertainment, real estate, and technology investment group. SEG plans to develop a state-of-the-art practice and training facility for their new National Hockey League (NHL) franchise, Utah Hockey Club, on the 111-acre site to create the ultimate mixed-use destination.
Because of its proximity to downtown Salt Lake City and Interstate 15 as well as being a shovel ready site, a direct result of PRCP’s expertise in unencumbering the land and maximizing entitlement rights, SEG will be able to begin construction work immediately after closing. PRCP has successfully executed this strategy at other properties in its portfolio, including at Yorktown Center in Lombard, Illinois, where the company obtained development rights on a vacant parcel of land adjacent to the mall that it then sold to D.R. Horton.
"This transaction was a win for all parties involved," said Steve Plenge, Chief Executive Officer of PRCP. "By strategically repositioning The Shops at South Town and preparing it for its next phase, we've not only secured a successful exit for our investors but also laid the groundwork for a transformative project that will benefit the Sandy and greater Salt Lake City communities while supporting Utah's exciting entry into the NHL."
PRCP plans to use the proceeds from the sale to pay off the outstanding balance of the loan in full and reinvest elsewhere in its portfolio to continue its track record of evolving its real estate for the next generation. PRCP will continue to manage and lease The Shops at South Town to ensure continuity with the ownership transition and minimize disruption for consumers. PRCP will lead SEG’s leasing efforts for The Shops at South Town, in partnership with Woodley Real Estate.
Oscar Parra, Chief Financial Officer of PRCP, shared further insights on the transaction: "Our approach at South Town exemplifies what we do best – we clear the path for an asset’s future highest and best use. At this specific site, we spent years methodically removing obstacles, updating old agreements, and setting the stage for modern, mixed-use development. When SEG and Woodley Real Estate came along, they found a site that was ready to go. This isn't just about selling property; it's about reimagining spaces for the future. We've seen firsthand how this approach can elevate a property's potential and value. In certain cases, we have seen malls in our portfolio jump from B+ to A- ratings just by reducing retail square footage and introducing mixed-use elements. This deal with SEG is a perfect example of how our approach can realize opportunities and create mutually beneficial solutions for asset owners, buyers and communities at-large.”
“This entire process with PRCP was seamless and efficient, and we are thrilled they will continue to be involved with The Shops at South Town,” stated Jim Olson, an executive with SEG and project lead for The Shops at South Town. “We look forward to being an integral part of this community.” For an aerial view of The Shops at South Town and to see the location of where the practice facility will be constructed, See below.
