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April 01 , 2011

Village on the Parkway Sold to Lincoln, The Retail Connection, and Fidelity Real Estate Group

Village on the Parkway Sold to Lincoln, The Retail Connection, and Fidelity Real Estate Group


D Magazine

Posted on April 1st, 2011 5:38pm by Christine Perez

Village on the Parkway, a large retail complex at the southeast corner of the Dallas North Tollway and Belt Line Road, has been sold to a trio of real estate investors and developers: The Retail Connection, Lincoln Property Co., and Boston-based Fidelity Real Estate Group.

Built in 1981, the sprawling seven-building Mediterranean-style complex totals 380,000 square feet and is about 60 percent leased to tenants such as 24-Hour Fitness and Gloria’s, TGIFriday’s, and Blue Mesa restaurants.

The property was sold for an undisclosed amount by J.E. Robert Co., which took ownership after a default by its former owner, DRA Advisors. The Retail Connection previously owned the complex, from 2004 until 2007, when it sold Village on the Parkway to DRA.

Alan Shor, president of The Retail Connection, talked to D from The Ballpark in Alrlington, where he was “decompressing” after an intense six weeks of negotiations.  He said the partners are planning a significant redevelopment of Village on the Parkway, which has been floundering since its former 150,000-square-footo lead tenant, Bed Bath & Beyond, moved to newer digs near the Galleria.

With the acquisition, The Retail Connection now owns about 1.8 million square feet of North Texas space, including the 820,000-square-foot Arlington Highlands shopping center. Shor says the company is ready to make more buys—both in and outside of Texas.

“We are starting to see what we thought we would see: banks starting to take back properties after an extended period of time and, with the acquisition and credit markets firming up, putting them on the market,” he said. “It’s going to be a healthy acquisition market for while now.”

Village on the Parkway is the first co-venture for the three partners. The Retail Connection does development, but is especially strong on the services side, with 200 tenant-rep clients and a leasing group that oversees about 22 million square feet of space. There were a number of serious bidders interested in the property, Shor said. “The seller felt comfortable that we and our partners had the retail expertise to fix it once and for all, the capitalization to close the deal, and the ability to execute.”

The new owners will keep the Village on the Parkway name and will begin redevelopment by focusing on the front and back sections of the project. They’ll leverage their collective strengths in development, leasing, and property management. Expect new tenant announcements soon, Shor said: “There will be a part two to this story, and it will be the best part.”

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