Cappelli Sells Majority Interest in New Roc City

Jon Weis, a spokesman for EPT, said the firm acquired at least 51 percent interest in the New Roc Center property, which is valued at $105 million. Therefore, the deal is valued at a minimum of $53.5 million.

The transaction involved the entertainment/retail component of New Roc City, which totals approximately 450,000 sf. Overall, New Roc City, which opened in 1999, totals 1.2 million sf. Fully leased, it is anchored by an 18-screen Regal Cinema, Stop 'N Shop supermarket and Ballys Total Fitness Center. Cappelli Management will continue to manage New Roc City on behalf of the joint venture.

At the time of its opening, Cappelli officials stated that the entire 1.2 million-sf project cost approximately $190 million to build. Also part of the New Roc project is a 2,350-car enclosed parking garage.

A company spokesman said that Cappelli will retain full ownership of the adjoining 125-suite Marriott Residence Inn as well as the 100-unit Summit at New Roc Apartments properties at the New Roc site.

"The success of New Roc City as a premier destination for family entertainment has put in motion a chain of economic development activities in New Rochelle and we will continue to play a major part in its continued growth," says Louis Cappelli, president and CEO of Cappelli Enterprises.

David Brain, president and CEO of EPT, adds, "We believe entertainment is an important sector of the retail real estate industry. New Roc City, with its diversity of family entertainment opportunities and proven track record of success, fits perfectly into our portfolio."

Cappelli is currently building the $300 million City Center at White Plains development and is in the approval process for another $330 million venture that would include luxury condominiums, a Ritz-Carlton hotel and office space at 221 Main St. The developer has submitted plans to the city for Parcel 1A, a two-acre site located at the corner of Huguenot St. and LeCount Place. Cappelli hopes to build a 150,000-sf retail anchor store with approximately 220 luxury residential units. Company officials said the firm anticipates it can obtain all the necessary approvals so that construction could begin on the $150 million project in early 2004.