Newmark has announced the sale of Towne West Square located at 4600 West Kellogg Drive in Wichita, Kansas. The super-regional mall, consisting of nearly 900,000 square feet of gross leasable area located on 46.4 acres, was sold for $14 million to Kohan Retail Investment Group, a shopping mall investment company. Executive Managing Director Thomas Dobrowski of Newmark’s Capital Markets group represented the non-disclosed seller in the transaction.
The mall - which is situated within a major retail corridor - is anchored by Dick’s Sporting Goods, Dillard’s Clearance Center and J. C. Penney, and features an on-site Regal Cinemas movie theatre, and a well curated line-up of national and regional retailers, restaurants and servicers.
“Located less than four miles from Wichita’s Dwight D. Eisenhower National Airport; proximate to more than 20,000 higher education students and near surrounding redevelopment opportunities, Towne West Square is an ideal investment with strong value-add potential,” stated Dobrowski. “The mall’s already varied rent roll, with retail, office and entertainment uses, positions the buyer to further diversify, which is a lucrative approach for revitalizing and repositioning distressed mall assets.”
Newmark’s Regional Mall and Capital Markets Overview Report highlights the current mall sale cycle, which began in 2012 and is being primarily driven by REITs shedding their non-core mall assets and lender/special servicer sales as the result of overleverage. “The pool of active mall buyers has widened over the last 12 months, as new well-capitalized buyers who are chasing opportunistic returns enter the field,” added Dobrowski, who has sold 18 malls in 2018-2019, valued at over $500 million, representing nearly 50 percent of the U.S. market share.
Privately-owned Kohan Retail Investment Group is based in Great Neck, New York, and is one of the larger private mall investors in the country. Focusing on distressed properties with value-add opportunities, the investment company owns 27 malls, including its most recent acquisition of Towne West Square.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 16,000 professionals operate from approximately 430 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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