TAUNTON, MA-Shopping center developer MGHerring Group has acquired the troubled Silver City Galleria Mall here, nearly four years after the suburban Boston shopping center went into special servicing. At about 715,000 rentable square feet, it’s among the largest retail properties in New England, and one of two in the region which C-III Capital Partners reportedly hired Eastdil Secured to market this past October. The other property, the 700,000-square-foot Mall at Whitney Field in Leominster, MA, traded in late May.
The Taunton, MA Gazette reported Wednesday that Dallas-based MGHerring paid $22.1 million for the Siler City Galleria, in a deal for which the Associated Press reported two other entities involved: Contrarian Capital Management LLC of Greenwich, CT and Tricom Real Estate Group LLC in Dallas. That’s a fraction of either the $118-million purchase price the mall fetched in 2002 or the $138-million refinancing secured from Eurohypo AG in 2005 by its then-owners, a partnership of General Growth Properties and the Teachers’ Retirement System of the State of Illinois.
In October 2009, the loan went into special servicing with a balance of $128.5 million, according to industry data. C-III foreclosed on it two years later.
At present, nearly 30 of the mall’s 90 stores are vacant, the Gazette reported. That has cut annual tax revenues to Taunton from $4.5 million to as low as $1.6 million, Mayor Thomas Hoye Jr. told the newspaper. Its anchors include Sears, JCPenney and Best Buy, and there is also a 10-screen Regal Cinemas movie theater.
The Gazette quoted Hoye as saying he had met with MGHerring principals a month earlier in his office and came away impressed. “I’m very excited with the opportunity that this presents,” Hoye told the Gazette. “I’m optimistic new life will be injected into the mall.”
MGHerring has developed some of the Dallas/Fort Worth metro area’s largest regional shopping centers, including the 765,000-square-foot Golden Triangle Mall in Denton, TX and the one-million-square-foot retail component of the Village at Fairview in Fairview, TX. The Silver City Galleria, which MGHerring will manage, represents the company’s first foray into the Northeast.