Enclosed Malls Still Have Appeal

Malls like Colony Square in Zanesville, OH, may have gone out of fashion in core markets, but it still has strong sales growth and leasing momentum.

ZANESVILLE, OH—Time Equities Inc., a New York-based real estate firm, has just acquired Colony Square, a 422,881-square-foot enclosed regional mall located in Zanesville, OH, for $31.5 million. Boasting an occupancy rate of approximately 86% with 63 in-place tenants, the deal marks the firm’s largest retail purchase in the state.

Many investors believe enclosed malls are no longer relevant to the world of modern retail. But Time Equities has now bought five of these properties, frequently from REITs looking to sell off their non-core assets, and all located in secondary or tertiary markets. Company officials say others may be missing their importance and potential.