Mall operator signs self-storage tenant

PREIT is transforming underutilized mall space into self-storage. It has signed a new lease for a self-storage facility at Hyattsville, Maryland’s Mall at Prince George’s. Poverni Sheikh Group will develop the site, the company’s 10th self-storage project in the Mid-Atlantic. The 90,000-square-foot facility will open in the first quarter of 2022, approximately 15 miles from the planned Amazon HQ2 in Crystal City, Virginia. Poverni Sheikh CEO Eugene Poverni cited the location’s “vibrant, retail-rich environment” and said the self-storage would be an amenity for the community.

RELATED: Here’s where Amazon is actually spurring brick-and-mortar retail

Poverni Sheikh has developed more than $250 million of self-storage real estate, 15 projects, since the company’s 2012 inception. Meanwhile, PREIT has been upgrading its portfolio to include more experiential tenants and mixed-use components. “This new addition is the perfect example of our value-add approach to our portfolio in a dynamic environment, turning unused space into a storage facility in a market dense with new apartment homes,” said CEO Joseph Coradino.

RELATED: Join the Mall Reincarnations Group Chat on the ICSC Community

Office/R&D reuse of mall anchor creates retail demand

M & J Wilkow and Big Shopping Centers bought a Macy’s anchor at their Waterfront shopping center in Homestead, Pennsylvania, from the retailer in 2018, converted it into an office and R&D facility leased to online education platform Commonwealth Charter Academy and Siemens Mobility and now have sold the property to CCA. M & J Wilkow will manage the property. “When we purchased the building from Macy’s, we knew it would be ideal for business tenants,” said M & J Wilkow senior vice president Martin Sweeney. “The extra-large floor plans and ceiling heights, coupled with The Waterfront’s existing amenities, immediately appealed to Siemens and CCA.”

CCA occupies the first floor, spanning nearly 70,000 square feet. Siemens Mobility will continue to occupy the second floor, of similar size. “During the last few years, we’ve created a complete business ecosystem at The Waterfront,” said CCA president and CEO Thomas Longenecker. “The centralized location, as well as the center’s dining and entertainment attractions, have helped keep our team energized and productive. This strategic purchase was the natural next step as we continue to expand our operations.”

This time last year

Well, Macy’s smaller concept and sustainability-minded shoppers are still stories today, and the Simon-Taubman merger did eventually close. Those stories and what else SCT was talking about a year ago this week:

Macy’s launches new retail concept in Texas even as it shutters traditional stores
Retailers serving sustainability-minded shoppers
Simon acquires Taubman’s high-end portfolio in $3.6 billion deal
The ICSC member well positioned to influence the U.S. retail landscape
Thomas to head Saks Off 5TH
In the pipeline: Who’s building what, where
Georgia: Governor signs e-fairness bill

Simon launches company to buy retail-focused firms

Simon is forming a publicly traded company to pursue private sector deals with innovative companies that will “transform retail.” It filed a notice with the SEC that it is creating Simon Property Group Acquisition Holdings, a special purpose acquisition entity, or SPAC, that will target companies for acquisition “that will benefit from the experience, expertise and operating skills of our management team.” Simon plans to raise as much as $300 million in an IPO. Simon Property Group Acquisition Holdings does not have a specific target and instead is focused on “innovative business with the potential to disrupt various aspects of the retail industry and make a transformative impact on in-person and/or online experiences,” according to the filing.

“We are well positioned to identify and execute an acquisition with a company that will benefit from SPG’s industry expertise, access, scale and broad network of client and supplier relationships, which a financial sponsor could not easily replicate,” the filing said. “We intend to utilize Simon’s relationships with and ownership of brands, retailers and operating businesses and its broader network of connections in real estate, retail, finance, media and entertainment.”

Other commercial real estate firms like CBRE and Tishman Speyer have launched similar SPACs.

Nothing to see here, just a 235-acre development

Developers are prepping the initial, $500 million phase of Port Covington, a 235-acre redevelopment along the Baltimore City waterfront often described as one of the nation’s largest urban revitalization initiatives. The Port Covington Development Team — Sagamore Ventures, Goldman Sachs Urban Investment Group and Weller Development — have revealed plans to initiate vertical construction of five buildings totaling 440,000 square feet of office, 586,000 square feet of residential consisting of 537 units, 116,000 square feet of retail, more than 1,000 parking spaces, and 10 acres of parks and public space. That development phase is expected to start delivering in late 2022.

Port Covington ultimately will include as much as 18 million square feet, including office, retail, housing, restaurants, extended-stay units, 40 acres of green space and a section of restored waterfront. Chicago Title Insurance Co., which closed and insured the project, says it involved 15 title insurance policies for nearly 50 land parcels and more than 60 legal documents.

The Smurfs were on to something

To alleviate climate change, researchers are looking to mycelium, the fungal network from which mushrooms grow, as a new building material. Proponents say the durable, biodegradable material is a sustainable alternative to more-polluting materials like cement and fiberglass insulation.

North Carolina center drops slavery-era moniker

Raleigh, North Carolina, shopping center Cameron Village is changing its name to erase the link to a North Carolina family whose patriarch, Duncan Cameron, was one of the largest landowners and largest slaveholders in the South. The center, built in the late 1940s, will be known as Village District, according to its current owner, Regency Centers.

Retailers have been busy

After filing for Chapter 11 bankruptcy protection in December, Francesca’s Holdings Corp. sold to affiliate of TerraMar Capital LLC. Francesca’s will continue to operate at least 275 stores, down from 558 as of Dec. 3. • U.K.-based JD Sports Fashion, owner of Finish Line and several European sports apparel chains, will buy DTLR Villa, which sells street-inspired sportswear to a young, urban customer base through its 247 U.S. stores. • The attempted revival of Toys R Us has faltered. The only two Toys R Us stores that opened in November 2019, in New Jersey and Texas, as part of an attempted U.S. comeback have closed. • Online retailer Backcountry, which sells gear for the outdoors, intends to open a store in Boulder, Colorado. • Chipotle plans to open 200 stores in 2021, as digital sales skyrocket. • Walmart will add automated microfulfillment centers to dozens of store locations. Some will occupy existing store space, while others will be new construction. Walmart also will add automated drive-thru pickup points at select stores. • Amazon is putting additional touchless, palm-reading payment technology into its high-tech Amazon Go convenience stores in Seattle.

Centennial names Whitney Livingston president

Centennial has promoted Whitney Livingston to president and COO from her previous role as COO. “Whitney Livingston has made a significant impact on this firm since she joined us in 2018,” said founder and CEO Steven Levin. “Her superior ability to connect with people and to build and maintain meaningful relationships at every level makes her a leader people want to follow and do business with.”

The latest retail property deals

Big V Property Group will buy the 1 million-square-foot Rim shopping center in San Antonio from Hines Global REIT San Antonio Retail I LP for $219.7 million. The purchase includes vacant land. Part of a master-planned community, the center is tenanted by the likes of Bass Pro Shops, Best Buy, Burlington, JCPenney, Lowe’s, Macy’s and Panera.

Charing Cross Partners bought the 108,800-square-foot South Bay Village in Torrance, California, from Regency Centers for $39.8 million. Tenants include El Pollo Loco, HomeGoods and Walmart. Newmark represented the seller, and Westmac represented the buyer.

Broad Reach Retail Partners acquired Avent Ferry Shopping Center in Raleigh, North Carolina, from Weingarten Realty for $15.8 million. Anchored by Food Lion, the 119,652-square-foot center is tenanted by Family Dollar, Walgreens and the DMV.

NewStreet Properties sold the 72nd Crossing Shopping Center in Omaha, Nebraska, for $12.75 million. Tenants at the 98,837-square-foot property include Big Lots, Dunkin, Michaels and PetSmart. Investors Realty represented the seller, and Equity Management Group represented the buyer.

Mesa, Arizona’s 83,743-square-foot Augusta Ranch Marketplace in, anchored by supermarket Bashas’, traded for $12.5 million. Daum Commercial represented the 1031 buyer. Velocity Retail Group and Faris Lee represented the seller.

A consortium of developers led by Synergize Ventures, Lotus Equity Partners and Ambassador Equities bought Sierra Crest Center, a mixed-use center in Santa Clarita, California, for $9.9 million. Tenants include AT&T, Dunkin, Firestone, Farmers Insurance, State Farm and Valvoline. CBRE represented the buyer and seller.

Starbucks Shops at Lafayette, a 9,024-square-foot property in Lafayette, Colorado, sold for $5.6 million. Tenants include Batteries Plus Bulbs, Mod Pizza, Starbucks and Verizon. “Starbucks-anchored retail centers with a drive-thru continue to be in high-demand,” said Marcus & Millichap associate Austin Snedden, who represented the seller.

Shallya Wholesale Distributing acquired the 18,550-square-foot Peachtree Corners Pavilion in Norcross, Georgia, for $4.3 million. Tenants include Tapout Fitness, Avis, Shane’s Rib Shack and CBD Plus USA. SRS Real Estate Partners’ Investment Properties group represented the seller, and Skyline Seven Real Estate’s senior associate Chase Murphy represented the buyer.

The 40,800-square-foot Congers Colonial Plaza Shopping Center in Congers, New York, sold for $4 million in a 1031 exchange. Tenants include Subway, Surge dance studio and dental and physical therapy offices. LichtensteinRE represented the seller.

Developer Wayne Robinson sold the 15,000-square-foot Turner McCall Boulevard shopping center in Rome, Georgia, to Keepsake Storage and Freedom Storage for $3.5 million in a 1031 exchange. Tenants include Blue Fin restaurant, Firehouse Subs, O’Charley’s, Republic Finance and a nail studio. Bull Realty brokered the transaction.

Jefferson Realty Co. sold the 39,000-square-foot Town & Country Shopping Center, in York County, Virginia, to Town and Country Properties for $2.9 million. Tenants include NAPA, Family Dollar, DaVita dialysis, Eastside Church, The Wash House and Sherwin-Williams. Cushman & Wakefield | Thalhimer represented the seller.

Fidelis sold its interest in Houston’s Village Plaza at Bunker Hill to Weingarten Realty and simultaneously purchased Weingarten’s Overton Park Plaza in Fort Worth, Texas. Tenants at the 491,686-square-foot Village Plaza at Bunker Hill include H-E-B, PetSmart, Ross Dress for Less, Academy and Burlington. Tenants at the 354,600-square-foot Overton Park Plaza include Buy Buy Baby, HomeGoods, PetSmart, Sprouts Farmers Market and T.J.Maxx. JLL helped broker the deal.