MORROW, GA—Los Angeles-based Vintage Real Estate has acquired the 1-million-square-foot foreclosed Southlake Mall here. The firm says it has immediate plans to undertake significant capital investments to bring in new tenants and restaurants and upgrade the common areas at the property.
General Growth Properties, which filed for bankruptcy in April 2009, purchased the mall in 1997 and renovated it in 1999. In 2007, General Growth Properties placed $100 million of debt on the property. The lender foreclosed on the mall in February 2013. No financial details on Vintage’s purchase of the property were released. The Southlake Mall is located at 1000 Southlake Circle and sits on a 100-acre parcel. The deal marks Vintage Real Estate’s entrance into the Georgia real estate market.
The mall, anchored by Macy’s and Sears, is currently 90% occupied and includes Victoria’s Secret, American Eagle Outfitters, Footlocker, Helzberg Diamonds, Aeropostale, Bath and Body Works, Finish Line, New York & Co., Children’s Place, City Gear, DTLR, Kay Jewelers, rue21 and Express on its tenant roster.
“Southlake Mall already benefits from a great tenant line-up and tremendous freeway visibility in a growing market with impressive leadership,” says Fred Sands, chairman of Vintage Real Estate. “We have the capital and experience to transform it into a thriving and popular destination for the Atlanta Metro Area.”
In addition to its capital investments at the Southlake Mall, Sands adds that Vintage will also redevelop the adjacent 160,000-square-foot building vacated by JCPenney in 2011, which it has under contract to purchase.
“We plan to completely transform this space and bring in tenants currently missing from the mall’s ideal merchandising mix, such as fashion retailers and popular restaurants,” Sands says.
He adds that Vintage is looking for other retail investments across the nation. “We have the capital and the team to reposition and reinvigorate troubled regional malls. Sellers and brokers know that we do what we say and say what we do. If they want a reasonable surety of closing, they call us,” Sands says.