ALBANY, OR-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that Vintage Real Estate has purchased the approximately 406,500-square-foot Heritage Mall here in Albany, OR. “We have the capacity, both in terms of capital and management, to reposition the mall and improve its performance by adding many national tenants,” explains Fred Sands, chairman of Vintage Real Estate.
Heritage Mall has 52 major retailers, boutiques and restaurants including Target, Sears, Ross Dress for Less and Old Navy, Maurice’s, rue 21, Zumiez, Famous Footwear, Game Stop and Bath & Body Works. “Heritage Mall is well-located in the center of Albany, which is one of the fastest growing cities in Oregon,” Sands says.
“It is a strong addition to our retail real estate portfolio,” noted Sands. This is the first retail property investment for Vintage in Oregon,” he adds. “The company focuses on retail properties and owns numerous properties in California, Washington and other states in the US.”
Heritage Mall, located at 1895 14th Avenue SE, is set on 33 acres just west of Interstate 5, the region’s major thoroughfare, and is just north of Corvallis, home of Oregon State University and its more than 26,000 students. The mall was remodeled in 2006 and currently is 50% occupied.
“The mall is a solid property with tremendous potential in a strong market,” says Sands, who could not disclose the acquisition price to GlobeSt.com at this time. “We have a long-term strategy that builds on the strengths of this asset such as its central location and the recent property improvements.”
Charlie Christensen, executive vice president of asset management at the firm, adds that the company is about to “re-merchandise the mall and enhance its appeal to consumers throughout the region,” thanks to the company’s current retail relationships.
According to Roger Burghdorf, EVP of leasing for Vintage adds, “Along with discussions already in progress for numerous additional national tenants, we have identified a replacement anchor for the vacant Gottschalks space.” The new anchor tenant, he says, along with the planned redevelopment, “will generate significant new customer traffic and allow Vintage to upgrade the existing tenant mix and increase occupancy.”
Vintage Real Estate acquired the mall from a consortium of lenders. This transaction removed $38 million in debt from the property.