KKR & Co. LP, a global private equity firm, has purchased the Colonie Center Mall in the Albany region of New York City in partnership with a group of investors including Pacific Retail Capital Partners, Peter Fair and Collarmele Partners.
The purchase price was not revealed.
The Colonie Mall is one of the most popular and the second largest mall of Albany, according to the Business Journal. The 1.3 million square feet structure has more than 113 retailers. On the whole, the mall generates around $245 million in annual retail sales. It is anchored by Boscov's and Sears and Macys.
In 2007, the mall underwent a $110 million renovation and was converted into a swanky modern public hub. It attracted many national retailers like Cheesecake Factory, P.F. Chang's and L.L. Bean. Whole Foods will also open a new store in the mall in May. In addition to the retailers it also has a 13-screen movie theatre.
KKR and its partners hope to transform the mall's brand image and provide quality experience to shoppers.
"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," Ralph Rosenberg, head of KKR's real estate group, said to the Times Union.
The purchase marks KKR's third investment in a retail mall. In April 2012, it had partnered with the same consortium and purchased the Yorktown Center in Chicago for $196 million, reports Businessweek.
More recently, rumors of KKR entering into exclusive talks of buying major French fashion brands Maje, Sandro and Claudie Pierlot did the rounds. The acquisitions would give the company an enterprise value worth $850 million, reports FashionMag.com.
