CHRISTIANSBURG, Va. (WDBJ7) The New River Valley Mall has a new owner and management team which plans to grow the struggling mall.
Affiliates of Farallon Capital Management LLC out of San Francisco, CA bought the mall from the Pennsylvania Real Estate Investment Trust (PREIT), who were selling off non-core malls.
PREIT said in a press release in March, they sold the New River Valley Mall along with 12 other malls because, "Average sales per square foot of the 13 malls sold were $267 compared to February 29, 2016 sales of $458 per square foot, excluding the properties subsequently sold; Average Gross Rents for the 13 malls sold were $28.82 per square foot, nearly 50% lower than PREIT's portfolio average of $54.56 per square foot excluding non-core malls; Average non-anchor occupancy for the 13 malls sold at the time of sale was 82.1% which compares to a portfolio average of 92.9% at the end of 2015, excluding non-core malls; The 13 malls that were sold were a drag on the Company's performance, having generated a decrease in year-over-year Net Operating Income (NOI) of 10%, on average in the year before their respective dispositions."
The selling price was not disclosed, but documents filed with Montgomery County indicated it was $27 million.
CBL and Associates Properties LLC out of Chattanooga, TN will be manage, lease, and market the mall.
They said in a statement released to WDBJ7, "Over the long-term, there is tremendous opportunity at New River Valley Mall to bring new growth and vitality to the center with new-to-the-market stores, restaurants and entertainment options."
The mall, which was opened in 1988 and renovated in 2006, is 464,000 square feet and has anchor stores Belk, Dick's Sporting Goods, JCPenney, Kohl's, and Regal Cinemas.