Regency Mall has new local owners
Thalhimer Realty Partners Inc., and The Rebkee Co. announced Tuesday that they teamed up to acquire Regency Square Mall in Henrico County, a 450,000-square-foot enclosed mall that is one of the region’s best-known and oldest commercial retail properties.
The companies did not disclose the sales price. Regency has an appraised value of about $15 million. Some real estate analysts said earlier that the mall would probably go for about $20 million, a price far below what is owed on an outstanding mortgage of nearly $70 million, with Regency part of an original CMBS (commercial mortgage backed securities) deal that included other properties. The Richmond Times-Dispatch reported that the deal closed for $13.1 million.
Built in 1975, the mall is part of an 820,000-square-foot retail center located on 50-plus acres off Parham Road. It’s most recent owner was the Michigan-based Taubman Centers. It owned Regency Square from 1997 until December 2011 when it turned the property over to the lender to avoid foreclosure rather than continue to pay on its loan. Thalhimer and Rebkee purchased the property from LNK Partners LC, based in Miami, a special servicer that took over the loan when it moved into default.
The new ownership team said they will be reach out in coming months to the community and the retail market to develop a plan to revitalize the mall.
“Regency Mall will be a challenge to reposition in an already crowded retail environment, but due to its superior location, and with the help of Henrico County, our ownership team is up to the task,” Rob Hargett, president of The Rebkee Co. said in a statement.
Mark Slusher, senior vice president of Thalhimer Realty Partners Inc. added, “Regency Square and the community it serves still have all the elements that make it a wonderful retail destination. It simply needs the energy and expertise of strong local ownership to explore how it can become an even better retail and entertainment experience. It won’t happen overnight, but we are excited about the opportunities it presents for Henrico County and the entire Richmond community.”
Located between River Road and I-64 on the Parham Road/Route 150 corridor in western Henrico County, the property is anchored by Macy’s, J.C. Penney, Sears, and Forever 21, and includes other national retailers such as Sephora and Victoria’s Secret.
The new ownership group has engaged Cushman & Wakefield | Thalhimer as the exclusive leasing representative and property manager. Lee Warfield, president of Thalhimer said the firm is excited to take on the challenge. “Our goal is to bring new retailers to the mall that will greatly enhance the shopping experience of its customers.” Connie Jordan Nielsen, senior vice president at Cushman & Wakefield | Thalhimer, will lead the mall’s leasing program.