TALLAHASSEE, FL-The 963,000-sf Tallahassee Mall, the largest retail campus in North Florida, is under contract to be sold by Tallahassee Mall Partners Ltd. to Feldman Mall Properties Inc. of Great Neck, NY for a total price of $61.5 million.
A closing date hasn't been set. The contract price equates to $63.86 per sf, a figure that is "far below replacement cost for a comparable-sized property," local retail brokers tell GlobeSt.com.
Under terms of the deal, Feldman Properties, headed by Larry Feldman, will assume an existing mortgage loan of about $45.3 million and will pay about $16.2 million in cash. Feldman couldn't be reached by GlobeSt.com's publication deadline, but in a prepared statement he says the property has a long-term ground lease that expires in 2063.
Feldman Mall Properties Inc. was formed to continue the business of Feldman Equities of Arizona LLC, according to the company's website. The company's investment strategy is to "opportunistically acquire under-performing malls and transform them into physically attractive and profitable class A or near class A malls through comprehensive renovation and re-tenanting efforts aimed at increasing shopper traffic and tenant sales." The company also has an office in Phoenix.
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