ALBANY-KKR, a New York City private equity firm, and partner Colonie Pacific have acquired the 1.3-milion-square-foot Colonie Center mall here.
No financial terms of the transaction were released. The buyers of the property that features 113 stores, includes KKR Financial Holdings LLC. The regional mall sits on 91 acres in Albany directly off of I-87 at the intersection of Wolf Road. It is anchored by Macy's, Boscov's and Sears. Some of its other major tenants are: Aeropostale, American Eagle, Christmas Tree Shops, Express, Sephora and Victoria's Secret. The shopping center also has a 13-screen Regal Cinemas and a Whole Foods that is anticipated to open in 2014.
According to a KKR announcement, the property generates an estimated $245 million in retail sales, including anchors with specialty retail stores the mall generates an estimated $400 per square foot.
In 2007, Colonie Center underwent a significant renovation that incorporated a “lifestyle” retail component and an improved streetscape and attracted such tenants as L.L. Bean, P.F. Chang's and Cheesecake Factory.
According to the Albany Times Union, the mall was purchased in 2009 by Heitman Value Partners of Chicago. The firm had previously shared ownership with Feldman Mall Properties, a Long Island-based REIT.
KKR and Colonie Pacific, a partnership between Pacific Retail Capital Partners, Collarmele Partners and Peter Fair (Continuum Partners), say they plan to make additional capital investments and will also focus on attracting new tenants to the market.
Ralph Rosenberg, a member of KKR and head of the firm's Real Estate group, states, “Colonie is an institutional-quality asset with tailwinds from a significant recent renovation. With additional investment and a revamped leasing strategy, Colonie will be an even more attractive home for current and prospective retailers in Albany. The transition in ownership will be seamless for shoppers, and our goal is to make the shopping experience even better than it is today.”
The purchase is KKR's third retail real estate investment since 2011 and ninth overall.
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