HFF Arranges $74M for Renovation of Salt Lake City Mall
- Apr 18, 2008
The renovations at Trolley Square in Salt Lake City, an upscale lifestyle center and tourist attraction, will continue with a $74 million loan arranged by Holliday Fenoglio Fowler L.P.HFF senior managing director Lloyd Minten, working with center owner ScanlanKemperBard Cos., placed the loan with Bank of America as administrative agent, in syndication with Wachovia, according to a release from HFF. The financing recapitalizes an adjustable rate loan that was arranged by HFF when SKB bought the site from Simon Property Group in August 2006 for $38.6 million.“HFF was able to secure attractive financing that provided flexibility for the borrower to complete their business plan and finish the renovation of the property,” Minten said in the release. “The renovation will include the addition of four retail buildings totaling 86,000 square feet, one of which will be occupied by Whole Foods and will open first quarter of 2010.”Plans also call for renovations in Trolley Square’s 226,000-square-foot main building and for parking to be moved underground. Among the retailers expanding at Trolley Square are Pottery Barn and Williams-Sonoma, both owned by the Williams-Sonoma Group. The group also has a Pottery Barn Kids store at Trolley Square and is adding West Elm, a home furnishings store, to the shopping center. Minter said Williams-Sonoma Group will have over 47,000 square feet of space at Trolley Square between its four stores.Trolley Square currently has 32 tenants and 61 percent occupancy. Renovations are being done in phases and should be completed by 2010. Originally built in 1908 as a trolley car barn complex, the property is listed on the National Register of Historic Places and is also designated as a Utah Historic Site.It is not the only retail development making news in Salt Lake City. Work is continuing on City Creek Center, a $1.5 billion mixed-use project in downtown Salt Lake City that started with the razing of two outdated malls, the Crossroads and ZCMI Center. City Creek Center, which is being built by City Creek Reserve Inc., a development arm of The Church of Jesus Christ of Latter-Day Saints, will encompass three city blocks and will include retail, offices and new housing. Two department store anchors, a two-story, 124,000-square-foot Nordstrom and a three-story, 150,000-square-foot Macy’s are planned, according to an April 6 story by Laura Hancock in the Deseret Morning News. Retail development won’t be finished until 2012. A March 19 story in the same newspaper by Jared Page reported that there will be about 900 units of mostly upscale housing. That will be built in phases with the first residents arriving in early 2010. Parking structures are under construction and should be finished by next year. Also expected to be completed in 2009 is a 50,000-square-foot Harmons grocery store that will be build at 100 South between State Street and 200 East, according to the Deseret Morning News.