Adds three centers – The Galleria at White Plains, NY; Northpark Mall, Ridgeland, MS and The Esplanade, Kenner LA – to Pacific Retail’s operating portfolio
LOS ANGELES – September 19, 2016 – Pacific Retail Capital Partners announced today that it has completed the acquisition of a portfolio of three regional malls totaling approximately 2.8 million square feet in joint venture with an investment partner. The centers, with a combined value in excess of $200 million, are all well-located commercial real estate properties in substantial markets and offer the opportunity to improve performance through a program of active management, capital improvements and community-focused leasing.
“These properties are all prime examples of retail centers that serve a vital need in the community and will benefit from the tailored management approach that is a hallmark of Pacific Retail,” said Steve Plenge, managing principal of Pacific Retail Capital Partners. “Pacific Retail’s experienced team will be deployed to evaluate each asset in the context of the neighborhood and what is valued by the customers to create a program to further enhance its appeal. This may include bringing new uses to the center, improving the physical space, adding events and public programs and in some cases redeveloping portions of the real estate.”
The Galleria at White Plains is an approximately 870,000-square-foot, four-level, enclosed regional mall with an irreplaceable location in a major urban market in Westchester County, New York. Located at 100 Main St., at the junction of Main Street and Lexington Avenue, the center is across the street from The Ritz-Carlton Hotel and Residences and walking distance to the Metro North train station. White Plains is both an attractive residential location, popular with commuters to Manhattan, and boasts a bustling business district with nearly six million square feet of office space within walking distance of The Galleria. The center currently features 130 retailers including Macy‘s, Sears, H&M, Forever 21 and a host of eateries. “To build on this strong asset, among the initiatives we are considering for The Galleria is stepping up the food offerings with more casual and fine dining and an enticing food hall to better serve area residents, visitors and office workers. Further, we will conduct a floor-by-floor evaluation of the center to outline a capital improvement and leasing program,” Plenge commented.
Northpark Mall is set on almost 100 acres in Ridgeland, Mississippi, a mature yet growing community that has seen the addition of 8,000 homes in the past ten years, approximately 10 miles from the state capital of Jackson. Located at 1200 E. County Line Road, the busiest retail corridor in the state, the approximately 958,000-square-foot, two-level mall offers 120 retailers and eateries such as Dillard’s, Belk, JCPenney, H&M, Victoria’s Secret, Footlocker and Sephora. Northpark is the only enclosed regional mall in a 50-mile radius and serves a large residential population. “In addition to our hands-on management and inventive marketing programs, at Northpark we are exploring the potential to add retailers that will be new to the market but fit the area demographics and demand. We also will be refreshing the space to make it more attractive and inviting, and bringing greater and more diverse dining options,” Plenge observed.
Set on 80 acres, The Esplanade, at 1401 W. Esplanade Avenue in Kenner, Louisiana, is just five minutes from the New Orleans International Airport and just 15 minutes from downtown New Orleans. The more than one million-square-foot mall is well-located in a popular residential area near Lake Pontchartrain. Easily accessed with a newly opened direct-access ramp from the I-10 regional thoroughfare, the two-level center includes Dillard’s, Target, Macy’s, Victoria’s Secret, Old Navy and an array of fast-casual eateries. The Esplanade also is home to The Grand Theatres multiplex. “The Esplanade will not only benefit from our focused and active management, it also is an example of a substantial piece of real estate in a thriving community. We may explore some development to bring new, complementary uses such as residences,” noted Plenge.
An active investor, in January Pacific Retail acquired the 1.4 million-square-foot Eastridge mall, a two-story, enclosed super regional mall set on 113 acres in San Jose. Pacific Retail has a strategic acquisition program that identifies select, well-performing markets and retail properties where it can apply its operating experience in enhancing and repositioning centers to further increase appeal to the local community and improve performance.
The joint venture was represented by Orrick in this transaction.