Pacific Retail Capital Partners Announces Sale of The Shops at South Town to Smith Entertainment Group
August 01 2024 - 7:08PM
Business Wire
Deal highlights PRCP's expertise in
unencumbering retail assets for redevelopment
Pacific Retail Capital Partners ("PRCP"), one of the nation's
leading retail real estate development, investment, management and
advisory firms focused exclusively on evolving retail-led real
estate, today announced the strategic sale of The Shops at South
Town in Sandy, Utah to Smith Entertainment Group (SEG), a sports,
entertainment, real estate, and technology investment group. SEG
plans to develop a state-of-the-art practice and training facility
for their new National Hockey League (NHL) franchise, Utah Hockey
Club, on the 111-acre site to create the ultimate mixed-use
destination.
Because of its proximity to downtown Salt Lake City and
Interstate 15 as well as being a shovel ready site, a direct result
of PRCP’s expertise in unencumbering the land and maximizing
entitlement rights, SEG will be able to begin construction work
immediately after closing. PRCP has successfully executed this
strategy at other properties in its portfolio, including at
Yorktown Center in Lombard, Illinois, where the company obtained
development rights on a vacant parcel of land adjacent to the mall
that it then sold to D.R. Horton.
"This transaction was a win for all parties involved," said
Steve Plenge, Chief Executive Officer of PRCP. "By strategically
repositioning The Shops at South Town and preparing it for its next
phase, we've not only secured a successful exit for our investors
but also laid the groundwork for a transformative project that will
benefit the Sandy and greater Salt Lake City communities while
supporting Utah's exciting entry into the NHL."
PRCP plans to use the proceeds from the sale to pay off the
outstanding balance of the loan in full and reinvest elsewhere in
its portfolio to continue its track record of evolving its real
estate for the next generation. PRCP will continue to manage and
lease The Shops at South Town to ensure continuity with the
ownership transition and minimize disruption for consumers. PRCP
will lead SEG’s leasing efforts for The Shops at South Town, in
partnership with Woodley Real Estate.
Oscar Parra, Chief Financial Officer of PRCP, shared further
insights on the transaction: "Our approach at South Town
exemplifies what we do best – we clear the path for an asset’s
future highest and best use. At this specific site, we spent years
methodically removing obstacles, updating old agreements, and
setting the stage for modern, mixed-use development. When SEG and
Woodley Real Estate came along, they found a site that was ready to
go. This isn't just about selling property; it's about reimagining
spaces for the future. We've seen firsthand how this approach can
elevate a property's potential and value. In certain cases, we have
seen malls in our portfolio jump from B+ to A- ratings just by
reducing retail square footage and introducing mixed-use elements.
This deal with SEG is a perfect example of how our approach can
realize opportunities and create mutually beneficial solutions for
asset owners, buyers and communities-at-large.”
“This entire process with PRCP was seamless and efficient, and
we are thrilled they will continue to be involved with The Shops at
South Town,” stated Jim Olson, an executive with SEG and project
lead for The Shops at South Town. “We look forward to being an
integral part of this community.”
For an aerial view of The Shops at South Town and to see the
location of where the practice facility will be constructed, please
click here.
About Pacific Retail Capital Partners
Pacific Retail Capital Partners (PRCP) is one of the nation’s
premier retail operating groups of large open- air and enclosed
shopping centers, with more than $3.0 billion in assets under
management across the United States. Based in Southern California,
the company’s portfolio totals 24 properties encompassing over 20
million square feet. With a highly experienced team that has a
proven track record of generating value to its stakeholders, PRCP
is dedicated to evolving real estate for the next generation by
working with the communities it serves to design master plans that
transform its assets into high-performing mixed-use destinations.
The vertically integrated company provides end-to-end sourcing,
assessment, underwriting, valuing, developing, marketing, design
and asset management services. To learn more visit
pacificretail.com or follow-on social media at: Facebook:
@PacificRetailCapitalPartners and Instagram: @PacificRetail.
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For PRCP Matthew Chudoba or Kerri Harper (ICR)
prcp@icrinc.com