Affiliates and clients of KKR, including KKR Financial Holdings, in partnership with Colonie Pacific, have acquired Colonie Center.
Financial terms of the transaction have not been disclosed.
Colonie is a 1.3 million square foot super-regional mall with over 113 stores that sit on 91 acres in Albany, New York. The centre, located directly off of I-87 at the intersection of Wolf Road and Central Avenue where an average of 117,000 vehicles pass daily, benefits from being in a high-traffic area and within two miles of the University at Albany. The property generates an estimated USD245m in retail sales, including anchors with specialty retail stores producing an estimated USD400 per square foot.
Anchored by Macy’s, Boscov’s and Sears, the mall features a strong line-up of national retailers, including Aeropostale, American Eagle, Christmas Tree Shops, Express, Sephora and Victoria’s Secret. Colonie also has a 13-screen Regal Cinemas and a Whole Foods that is anticipated to open in 2014.
In 2007, Colonie Center underwent a significant renovation that incorporated a “lifestyle” retail component and an improved streetscape and attracted national destination tenants such as LL Bean, PF Chang’s and Cheesecake Factory.
KKR and Colonie Pacific, a partnership between Pacific Retail Capital Partners, Collarmele Partners and Peter Fair (Continuum Partners), plan to make additional capital investments and will also focus on attracting new tenants to the market.
Ralph Rosenberg, a member of KKR and head of the firm’s real estate group, says: “Colonie is an institutional-quality asset with tailwinds from a significant recent renovation. With additional investment and a revamped leasing strategy, Colonie will be an even more attractive home for current and prospective retailers in Albany. The transition in ownership will be seamless for shoppers, and our goal is to make the shopping experience even better than it is today.”
Colonie is KKR’s third retail real estate investment since 2011 and ninth overall.
