Regency Square shopping mall given back to lender to avoid foreclosure
- January 5, 2012
The title to Regency Square shopping mall in Henrico County — one of the Richmond region’s oldest malls — has been turned in to its mortgage lender to avoid foreclosure. Michigan-based Taubman Centers, which bought the mall in1997, announced Thursday that the title was transferred to the lender on behalf of LNR Partners LLC as special servicer.
Taubman said the move relieves the real estate investment trust of $72.2 million of debt obligations, plus accrued interest associated with the property, located off Parham Road. LNR Partners has hired Jones Lang LaSalle to lease and manage the mall, and Taubman will work with it during a one-month transition period.
Regency Square, an 820,000-square-foot shopping center built in 1975, is anchored by Macy’s (which has two locations), JCPenney and Sears. In the third quarter of 2009, following declining net operating income and increasing capital expenditure requirements at the center, Taubman announced an impairment charge of $59 million on its investment. Subsequently, its board concluded that it was in the best interest of the company to discontinue financial support of Regency Square.
The mall includes a mix of fashion and lifestyle retailers including Aldo, Sephora, and XXI Forever, and a food court with a variety of dining options. “Regency Square is an outstanding mall ideally located in the heart of Virginia’s capital city,” Greg Maloney, president and CEO of Jones Lang LaSalle Retail, said in statement. “Our team will find solutions and efficiencies that capture the value of everything that Regency Square has to offer.”
Taubman will continue to own and manage Stony Point Fashion Park, its other property in Richmond.