A New York hedge fund and a Boston real-estate developer have bought University Mall in South Burlington.
“The property has been a gathering place for decades and our commitment is to build on its success as a vital retail and economic asset for Vermont,” Alex Fleming, director of the New York hedge fund, Taconic Capital Advisors, said in a press release.
Taconic Capital Advisors bought the mall with Eastern Real Estate.
“We are thrilled to part of (sic) the fabric of the South Burlington community and contributing to its vibrancy,” Andrew Hayes, director of Eastern Real Estate, said in the press release.
The mall is the largest in Vermont. It includes the state’s only Target. It lost its biggest anchor, Sears, in 2020 and has not been able to find a new tenant for that location.
The Sears and Sears Automotive buildings are not part of the sale.
“The mall has done OK but, like a lot of malls, is in need of significant investment,” South Burlington City Councilor Matt Cota said. “It certainly is ripe for an investment that could bring more housing, more senior housing, more affordable housing in that area (and) could renew the retail businesses in that area.”
Cota sees opportunities for transit centers at the mall.
He also pointed to federal money that would build a walkway from Staples Plaza over Interstate 89 that he said would enable people to walk from The University of Vermont. The mall is located across I-89 about a mile from the university.
The Other Paper first reported the sale last week. At that time, the publication said the sale price was $60 million, a figure VTDigger has not been able to confirm.
“I have had the opportunity to get to know this team as they considered the University Mall acquisition and I believe they will be a strong partner and positive addition to South Burlington,” City Manager Jessie Baker said in the press release issued by the buyers.
Baker did not respond to a request for an interview.
Lenders foreclosed on the mall in 2016 when its owner, Boston-based Todd Finard, defaulted on a $92 million loan.
The press release said the mall is 95% occupied with more than 50 shops and restaurants.
Eastern Real Estate owns shopping centers in Florida, Nevada, California and Massachusetts. The company also redeveloped a mall in Wellesley, Massachusetts, where it added housing, according to Cota.
Heather Tremblay is expected to continue to manage the mall for KeyPoint Partners of Burlington, Massachusetts.
