SAN FRANCISCO, CA, Dec. 1, 2011 - PCCP, LLC announced today it has provided a $69.2 million senior loan to recapitalize and provide renovation financing for Valley Fair Mall (top left photo), an 877,153 square foot regional mall in Salt Lake City, Utah that is 93 percent occupied.
The ownership is a joint venture between Coventry Real Estate Advisors and Satterfield Helm.
Built in 1970, Valley Fair Mall consists of 150 tenants and is still anchored by original tenants JC Penney and Macy’s. A significant portion of the new loan will finance the construction of a new 15-screen Megaplex movie theater totaling 110,000 square feet that will replace a former Mervyns space, and is slated to open in the fourth quarter of 2012. Costco is the fourth anchor, with a free-standing 150,000 square foot building adjacent to the mall on a long-term ground lease.
The retail center has experienced significant repositioning already, with over 100,000 square feet of new junior anchor, restaurant and shop space built in the past three years.
The majority of this new space was built outside of the existing mall in a town center that increases the overall traffic of the mall. Costco, and other significant credit tenants including Ross and Petco, have been brought into the center over the past three years. The ownership intends to continue the momentum and repositioning progress over the next three years.
“The PCCP loan will refinance the current loan as well as provide funding for significant new construction including the Megaplex, approximately 50,000 square feet of new junior anchor space and significant renovation of the mall interior,” said Jim Galovan, vice president with PCCP, LLC. “Overall, this opportunity fit well with PCCP’s debt strategy as the retail center is a well-performing asset in a strong location with both durable in-place cash flow and immediate value-add opportunities.”
Learn more about PCCP at http://www.pccpllc.com/.
Contact: Darcie Giacchetto, 949.278.6224, Spaulding Thompson & Associates
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