Regency Antes Up About $20M for Retail Sweet Spot

The Jacksonville, FL-based Regency Centers Corp. controls all of Addison Town Center, except for a closed Kmart box bought in mid-February by Minneapolis' Target Corp.--a closing that drove a pass-through on a contract held by Dallas-based Weitzman Group. Regardless of who holds the deed, there's work to be done on the redevelopment to reclaim the title as "a cornerstone center" at the power intersection of Marsh Lane and Belt Line Road in Addison.

Regency is in talks with the City of Addison to finish what the seller started by seeking approvals for an access off Marsh Lane, more signs and new landscaping. West Miller, Regency's senior vice president of investments, says that part of the plan should be in hand in 30 days.

Regency's bragging rights to the class A-plus property at 3740 to 3850 Belt Line Rd. didn't come easily. Miller tells GlobeSt.com that "this is the project we've had our eyes on for a year." Apparently, so did the rest of Dallas-Fort Worth as brokers, all asking for anonymity, talked about the golden opportunity to buy an in-progress redevelopment at a key intersection.

The buyer, in talks with national tenants, got a property with existing inline tenants on short-term leases and built-in, near-term upside to "position itself as a premier center in North Dallas once again," one insider confides.

Addison Town Center could have become a white elephant at a high-traffic intersection despite its four-corner retail standing. "Target stabilized the project," another source explains, adding that Babies R Us had planned to move, but re-upped when the "Red" decided to buy.

Target is looking to open at least 123,000 sf in October on the 11.5-acre site. Just yesterday, Cincinnati-based Kroger Co. opened a Signature store in 50,000 sf of a former Winn-Dixie. Meanwhile, Miller is talking to two nationals to backfill CompUSA's empty 40,000 sf. The talks are into the final round so a closing could come at any time.

Regency bought the 10-year-old holding in the past week from Commons at Cliff Creek Ltd., a German investment group that acquired it five to seven years ago from developer, Hunt Property Co. in Dallas. "That center for the last four or five years has had a revolving door of tenants," Miller says. "Our investment should bring the national tenants with long-term leases that should create longevity for the center."