COLONIE Colonie Center has been purchased by an investment firm.
Kohlberg Kravis Roberts & Co. announced on Tuesday, April 9, it had bought the 1.3-million-square-foot shopping center at an undisclosed price. The mall sits on 91 acres at the intersection of Wolf Road and Central Avenue in Colonie and contains more than 113 stores. According to KKR, the mall brings in an estimated $245 million annually in retail sales, which is about $400 per square foot.
KKR and Colonie Pacific, which is a partnership between Pacific Retail Capital Partners, Collarmele Partners and Peter Fair (Continuum Partners), announced in a press release they have plans to make additional investments in the mall and to attract new tenants. The mall underwent renovations in 2007, adding in stores including L.L. Bean, P.F. Chang’s and Cheescake Factory.
“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,” Ralph Rosenberg, a member of KKR and head of the firm’s real estate group, said a statement. “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 Center features department stores Macy’s, Sears and Boscov’s as well as national retailers including American Eagle, Sephora, Barnes & Nobel and Victoria’s Secret. It also has a 13-screen Regal Cinemas. Natural foods supermarket Whole Foods has begun renovating part of the Sears store and is set to open in 2014.
Found in 1976, Kohlberg Kravis Roberts has $75.5 billion in assets under management as of December 2012. This purchase is KRR’s third retail real estate investment since 2001 and ninth overall, according to the company.