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LAUREL, MD-The 665,000-sf Laurel Mall has come under new ownership now that its $31-million acquisition deal has closed. Santa Barbara, CA-based Somera Capital Management LLC purchased the distressed property with joint venture partner AEW Capital Management out of a receivership from Greg Malone of the retail division of real estate investment management firm Jones Lang LaSalle, who acquired receivership one year ago.

Somera and AEW--who relied on Morgan Stanley Mortgage Capital for acquisition financing--acted on behalf of Somera Realty Value Fund and AEW Partners V LP, respectively. Mike Dillon, a mall specialist in Marcus & Millichap's Chicago office, in conjunction with the Washington, DC, office, represented the receiver, Greg Maloney, president of Jones Lang LaSalle . The receiver and Dillon represented the underlying lenders, Bank of America, Sun Trust, Peoples Bank and Comerica Bank. Dillon also secured the buyer.

Presently featuring over 90 stores, Laurel Mall is an enclosed three-story retail property that debuted in 1981. Currently anchored by Hecht's and the International Furniture Liquidators, the shopping center is also home to the 162,000-sf anchor Burlington Coat factory, but its space and the 12-acre parcel it occupies is owned by a third party and was not included in the transaction. The purchase actually involved only a 503,000-sf segment of the property the remaining 23 acres.

Somera and AEW are not commenting on any future plans regarding Burlington Coat factory or specific plans for the renovation and releasing of the property, which saw anchors Montgomery Ward and JC Penney and other national retailers depart the enclosed shopping center a few years ago. Speaking about the transaction and hinting at the mall's future, Somera president and CEO David Brown says the acquisition "is consistent with our strategy of buying regional malls where we can add value and apply our knowledge for both the community and our investors."

Instant Insights /

UPDATE: $31M Laurel Mall Sale Closes

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